pmacduff Posted June 21, 2001 Posted June 21, 2001 I am working on a plan in which the owner has both W-2 and Schedule C income. He deferred from his W-2 wages and now wants me to compute the maximum he can defer from the Schedule C income. I was going to enter the owner as two people but I wasn't sure if that was the best way. There is also a match in the plan with a dollar cap so, thankfully, he doesn't get any more match. Any ideas on the best/easiest way to code this participant in Relius? Thanks in advance for any comments.
Tom Poje Posted June 21, 2001 Posted June 21, 2001 is this owner by himself or are there others in the plan as well? If using Relius to calculate ideal salary, it will reduce the sched C income by the contribution to others as step 1 in the calculation - but only by the profit sharing portion, not the match, unless they have changed the program. this means the estimated gross profits value you enter in specs should be reduced by the match. sorry, my brain isn't fully functional enough to answer your question on the other part at the moment (heck, its late on a Thursday)- I would run him as one ee...if sched C is going to put him over the $ limit, then I guess its a moot point.
pmacduff Posted June 21, 2001 Author Posted June 21, 2001 Tom - There are others in the plan (one NHC and the other is HC, owner's wife). W-2 is approx 21K and Sch C is Approx 76k, so he is not over the limit. It also appears with the Mrs. in the mix that he's going to have to take a refund anyway, so won't be able to defer from the Sch C income. I think under those circumstances, I am going to code him as one person in Relius. Thanks for the thoughts.
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