projected 2002 contributions

[FJR]

We have a takeover plan where the previous admin. did some pojections for 2002. I assume plan has been updated for Gust/Egtrra.

Integrated profit sharing plan with two employees. 200K for one and 20k for the other. 25% would be 55,000. They allocated 40k to the 200k emloyee and the rest went to the other. This would represent 75% allocation. Is this right? My feeling is the deductibility is correct, but not sure if you can get away with the allocation if it is an intrgrated plan. The 2 ee's are husband and wife.

Thanks

[rcline46]

Since you do not know if GUST/EGTRRA done you are not sure if the plan is integrated. You must know that before you can proceed.

Then, do the math, reallocate amounts over 415 like the doc says. Oh, you don't have the doc. Gotta have the doc!

[Blinky the 3-eyed Fish]

Keep in mind if it's a projection, the documents might not yet be in place to substantiate it. Of course there is still time to adopt the EGTRRA Good Faith Amendments that would allow for this allocation.