mjf624

So normally when someone gets paid consulting income, the accountant will then turn around and produce a Schedule C since there is most likely some sort of expense related to the consulting company (for example, accountant's fees to prepare return.) Therefore, for example, owned original business from 1/1/2000 and sold 8/1/16 under a S-Corp and owner made over $265,000 max comp. Let's call this company XYZ Trucking Company. Has 4 other employees and owner contributed max $60,000 under 4k/psp plan. Owner (John Doe) owned 100% of this company up until 8/1/16 and sold 100% of company to national firm. Then paid from 8/2/16 to 12/31/16 consulting income via 1099 non employee compensation which the accountant turns into a Schedule C. This would be called John Doe Consulting with different tax id. Wants to max out the compensation from this company as a SEP. John Doe owns 100% of this company. Not sure if this helps.

Belgarath. The second part of their income is being paid as a consultant via 1099. Would that be considered a corporation?

Great thanks for the help!

Hello, I have a client that had a business with employees and maxed out his profit sharing / 401k for 2016 ($59,000.) He sold business and terminated plan prior to end of 2016. He then received consulting income from the company that purchased his business as a 1099 consultant. Can he contribute under a SEP - consulting income and max this contribution for 2016 also? Thank you.

Does anyone know the actual IRS revenue code that allows for discretionary matching contributions in a 401k plan? Thank you.

Hi, Can anyone let me know if the 60 day rollover rule would apply for a distribution to an IRA to a deceased participant? Meaning they took a distribution in cash (no withholding) and now have changed their mind. Thanks.

If the Plan Document uses base pay, what is the determination for a Highly Compensated employee? Base pay or Total pay?

Thanks very much, Austin!

Simple terminated in 15 and converted to a 401k in 16. Two questions, can the 2015 employer contribution for simple be funded in 2016? If it is a partnership (k1's for partners - not w2) can the employee deferrals be deposited for the partners in 16 for 2015?

Thanks for quick response! Have a great evening!

Hi Everyone. New to BenefitsLink. Where and how do I post a topic? I have question on funding of Simple IRA Plans. Thanks very much!