caryn22359

I have a client who has a C corporation- He did a split dollar life insurance collateral assignment- He assigned his whole life insurance to the C corp. The corp. pays the premiums and he personally pays the PS 58 costs. On the corporation books is the cost ( premiums paid) . If he decides to cash in the policy, he will have a taxable gain personally, because he stills owns the policy.He is now going out of business and I want to close out the corporation, what happens to the cost of the insurance on the books? Does he need to repay the cost of the premiums? He is the only employee and shareholder in the company. Thank you.

I have a client that owns life insurance . Client owns an S corp and he is 100% shareholder. He wants to make the corporation and his children beneficiaries of the policy. The corporation will be paying for the premiums - Question: Can the corporation deduct the premiums? and What is the tax consequences if the shareholder dies? Thank you

Thank you so much for the help.

Unfortunately, I do not know his reasons for doing this. If the money goes into the estate and it is divided according to the will, 1) Does the estate pay the federal income taxes on the distributions to to the beneficiaries or is the income tax paid by the beneficiaries. thank you

Question , Plan participant died in January 2016 1. The primary beneficiary was his wife. She died before him and participant named his son as secondary beneficiary. 2. Son asked if he could disclaim his inheritance and the money be payable to the Estate to Father. ( he was the only other beneficiary) 2. Does profit sharing plans allow the beneficiary to disclaim? 3. If the beneficiary decides to disclaim, who will the lump sum be made payable to? 4. Is there mandatory withholding on the lump sum payment? Thank you for help in this.

I have a s corporation and a schedule c. I am the only employee on my corporation. The 2 business are related and I own 100% on both. Question: I already have an SEP plan on my schedule c. Can I establish a 401K salary deferral plan on my S corporation? I am over 50. What are the limits. Thank you for your help.

Not sure. This is an old plan. I have insurance in the money purchase plan , so I a little afraid to close the plan and just have 1 profit sharing plan. there is 1 owner and 2 employees. I don't think a defined benefit would be advisable because there are 2 other employees and they are 65 and 60. That is why I was asking about a 401K,. Thanks. Appreciate all the help and posts.

I am a little confused by the post. If I have a salary of 100,000 for 1 employee. Ex. I can contribute % to the money purchase plan, 8000 make up the balance with the sep 17% to the sep 17,000 and then the employee can defer 17,000 in wages to a 401K? thank-upi

I have a money purchase plan which I must contribute 8% each year. I also have a SEP for each employee. This year I am going to have a bigger profit than in prior year. I am thinking of establishing a 401K. Is this allowed. Thank you.

My client who is an S corp has 2 s/h that > than 2% .They have 2 types of medical plans through the company/ There are 15 employees. 7 of the employees do not get medical insurance because they are either covered by a spouse of they were government employees and have insurance elsewhere. They opted out of the plan. There are a total of 8 employees on both plans.The owners are over 65 and they are on medicare . They also have a medicare supplement through the company. 3 employees have either a family plan or a single. and 5 are on a medicare supplement. The company pays for both plans 100%. Question: The owners want to have reimburse their Medicare premiums ( which is taken out by social security) reimbursed by the company. They pay more in because there W2's are more than the employees.. 1) Can they be reimbursed by the company for the medicare that is taken out of their social security? Would this be discriminatory because their reimbursement is higher than the other employees? 2) Also would it be discriminatory because the other 8 employees WHO have insurance elsewhere also have medicare. DO they need to be reimbursed . They are not part of the medical plan. Thank you

Thank you. Unfortunately the bank issued a 1099int in a SEP plan as well. When my client opened these accounts (MPP and SEP) plans the original paper worked stated thats where it should go. A corrected W9 will fix the MPP, but will it fix the SEP-IRa employer plan.?

My client has both a SEP and Money Purchase Plan. She went to the bank and opened Cetificate of Deposits for both MPP and SEP for the 2012 contribution. The bank issued 1099INT for the interest in both plans. This has been going on for a few years. The 1099'sINT have been issued in the name of the Corporation. I looked at the original paper work and it said the name of the co. EX ABC F/B/O Joe, however they have been issueing the 1099INT . The assets in the pension plans are handled by the employer. I would like to resolve this without making an additional mess. Thank you.

I pay for my employees medicare supplement and medicare part d through my business. I just read that the medicare part d is not deductible in 2013. Is this true. Thank you.

Hi, Greater than 2% shareholder of an S corporation has an individual K plan. He receives 100k in salary. In addition, S Corp. has a medical plan and pays 20k for shareholder's insurance. The W-2 will show taxable wages of 120k of which only 100k is subject to FICA. The shareholder will deduct the 20k for the insurance premium included in taxable wages fro the W2 on page one of his 1040. For the 25% profit sharing calculation the question is... 1) Is the contribution $25,000 (25% of 100K)? or 2) Is the contribution $30,000 (25% of 120k)? While it's tempting to say 30k as the W-2 wages box is 120k, my gut tells me correct answer is 25k as there is no FICA withholding on the 20k and it is also an above the line deduction on the 1040. If you can site any code regs specifying the answer it would be appreciated. Thanks you. Caryn

Does anyone know the answer to this