jd1433

But a schedule C business can contribute more in the owners elective deferrals + match + catch up than the business earned on a net schedule C basis because of the examples covered?

So what you're effectively saying is that the output of this rule every time is "For catch up eligible people the only thing they can get away with is having the match take them beyond 100% of compensation?" since the catch up effectively frees up space so the match when added to the rest of contributions can exceed 100% of comp? Also just to be sure this is true whether we're talking pre-tax deferrals, Roth deferrals, or *after tax contributions* (non Roth after tax contributions that are not elective deferrals)?

I know this has come up several times on here with considerable back and forth. Any chance we can get some definitive answers on the topic of whether catch up contributions are allowed to exceeds 100% of comp? The argument relates to Internal Revenue Code Section 414(v)(3)(A)(i) not actually specifying a requirement for 100% of comp for catch ups. So just to confirm: -All 50+ year olds are able to tack on extra $6,500 to 100% of their comp (if comp is below the 415 specific dollar amount limit)? -Some 50+ year olds are able to tack on the extra $6,500 to 100% of their comp and depends on certain facts and circumstances? -No 50+ year olds are able to tax on the extra $6,500 to 100% of their comp and those that claim that 414(v)(3)(A)(i) allows for effectively excess of 100% of comp for catch ups are mistaken? Here are a couple of examples as food for thought (if you were able to confirm treatment for each you'd be a rockstar): -$10,000 self employed schedule C and 50+ -$0 self employed schedule C and 50+ -(negative $5,000) self employed schedule C and 50+ -$20,000 W2 and 50+ -$58,000 W2 and 50+ while using after tax contributions -$61,000 W2 and 50+ while using after tax contributions -$20,000 in a partnership