Lou S.

Why? If you reduce the $92,935 by the $18,587, 20% of gross, then you are left with a net comp of 74,348 which if you take 25% of the Net comp you get the same $18,587 of 25% of eligible compensation. No?

Mike laid it out very well. A few minor correction though is that the Maximum Annual addition is the lessor of 100% of Compensation of the 415(c) dollar limit for the year, which for 2021 is $58,000. I get a maximum deductible employer contribution that would be 20% of $92,935 or 25% of 73,880 = $18,470. Also if the participant is age 50 or older the elective deferral could be $6,500 higher with the catch-up. The catch-up is also not subject to any plan limitation including the 415 limitation.

As Bird said, what is the election? But for a Sole-Prop you are probably going to have a net income on Line 31 of Schedule C which is what it generally going to go on Form SE for calculating the SE tax half of which is deductible as the Employer portion, I believe all contributions on behalf of the Proprietor are then deducted on Schedule 1 Line 15. The portion of the contribution that is Employer contribution will reduce the Proprietor's income for pensions, the portion that is elective 401(k) deferral will not. But I'd always suggest double checking with the CPA.

For 2021 Partnership deduction limit is 25% of eligible pay for partcipants. As long as they are under that in the aggregate you should be able to do what you are describing. However as I understand it, since the deduction for the partner is taken on his personal return you might still be able to deduct it for 2020, you should discuss with the accountant.

8(e) would be the correct line.

Bill I think you hit the nail on the head head and I'd love to know the answer. Because if the answer is yes than the answer to Jakysar's question is yes, but if the answer is no then the answer to Jakysar's question is also no. It's not something I thought about previously when considering SECURE. That is if you can do it then the the funding deadline and deductible deadline for the for his 1/31/2021 PYE would both be 10/15/2021 assuming the 2020 SP tax return is on extension and he elects to deduct the contribution in the fiscal year for the plan year that begins in the the fiscal year. At least I think I have that right, if I shifted something I apologize.

You can absolutely add it for 2022. I'd probably want to do it before 2022 starts but as long as you do it before anyone works 1000 hours in 2022 you could still do it then.

I'm not sure if you've provided enough information but it sound like you are merging SubPlan into ParentPlan with all that would entail.

So many questions. Why does the paritcipant have a life insurance policy past NRA? Do you mean the Cash Surrender Value is $0 or the value of distributions paid to her exceed the Cash Surrender Value of the policy?

Does he have a court order stating he is an abandoned spouse or legally separated?

Isn't the answer find someone to do an annuity even if the Plan has to pay a premium to do it?

I'm not aware of needing HCE or Key EE data to complete Form 5500. I seem to recall there was a time period is recent history that the IRS tried to add some questions to the Schedule R that dealt with nondiscrimination testing that would have required some HCE data at least but it became optional and then dropped in subsequent drafts of the Form. HCE and Key data would be required to perform certain non-discrimination tests but not necessarily the 5500 or related schedules itself.

What is a frozen 401(k) plan? If it a 401(k) plan that was amended to a profit sharing plan by removing the elective deferral component of the plan?

No adjustment to W-2. The 1099-R will be the reporting of the income to the Participant.

It should be paid from the Plan to the Participant and reported on a 1099-R. Presumably with Code E indicating an EPCRS correction.

Voluntary AFTER Tax are not deducted. Hence the name after tax. The employee pays tax on them. The employer gets a deduction as they are part of the employee wages. They are not required to be reported on a W-2, but they can be reported in Box 14 for informational purposes.

That sounds like a question that should be referred to the Plan Administrator's or Plan Sponsor's attorney or bankruptcy attorney, if applicable. I'm not a lawyer but if the Plan Sponsor is the Plan Administrator and fails to perform the duties I think the IRS could probably go after the officers or owners of the company, but again I'm not a lawyer and suggest referring that question to qualified legal counsel. And you already know that not filing will trigger a letter from the IRS.

If he was a more than 5% owner at any point during the Plan year he is a key employee. See §416(i)(1)(A)- (i)-(iii).

If they bought the stock they bought the history. HCEs of ABC in 2021 will be HCEs of XYZ after the purchase. 5+% owners of ABC in 2021 will be HCE's of XYZ in 2022. Employees that have compensation over the HCE comp limit (unless not in TGP and that election is made) combined from ABC & XYZ in 2021 will be HCEs in 2022.

Yep brain cramp - 2020 - I'll edit my prior post.

CARES allowed it up to $100,000 but only through 12/31/2020 for Coronavirus Related Withdrawals which could be self certified and only for plans that added the CARES withdrawal provisions. I'm not aware of a general expansion for under age 59.5 other than the hardship exception. If it has been expanded, hopefully someone can point out where.

It sounds to me like a distribution from the plan. From your standpoint I would think the best solution would be for him to file an amended tax return, treat the amount as a distribution from the plan, get spousal consent if applicable. Count the distribution against his 415 limit. Adjust any rollover to the successor plan for 415 limit and increase suspense account accordingly. Allocate the suspense account in QRP over 7 years as originally planned. I mean he probably never should have made the contribution it sounds like but since he did I don't see how you unwind it just because he decided he didn't want to put it it. It doesn't sound like a mistake of fact.

Try the Bipartisan Budget Act of 2018 (Act). It optionally allows but does not require the expansion discussed.

Yes

Looks like you have $185K of income (278 + 34 - 127). I think if you didn't have the S-corp you could treat his loss as $0 for plan purposes but since all 3 are adopting members of the plan and a controlled group I believe you need to aggregate his W-2 wages with his SE loss.