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New Comp for partnership


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Guest chris4013
Posted

Suppose GroupA is to receive a 40k ps allocation. Joe Smith, a partner is group A doesn't want to reduce his income for the contribution, so he elects $0, or 20k.

Can a partner in Group a elect a different amount?

Guest chris4013
Posted

I didn't think this was possible, I just had a sales guy tell them it was.

But could we amend the rate groups to say the following:

Group A - Partners that elect to receive a 40k allocation

B - 30k

C - 20k

D - 10k

E - 0?

Posted

No, not overtly. An election is a cash or deferred arrangement (i.e. 401(k) plan) being offered only to partners.

But, Chris, I'll bet this is done covertly by some, but do so at your own peril.

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