S corp income issues

[Gary]

say an individual is an S corp. no other employees.

if on the individual's 1040 he shows S corp income of say 50,000 and no other compensation.

can the 1120S make a ret plan contribution for that individual (to either a DC plan or a DB plan) and can the individual make a 401-k salary deferral?

thanks ,

gary

[Guest b2kates]

What earned income does the owner/employee have? Based on your short explanation, there is zero earned income, only S distribtutions.

Quick answer, no W-2 income, no compensation basis for plan contribution.