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Help calculating contributions for LLC members


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Guest schmpat
Posted

This plan has 3% match, 4.5 profit sharing and 4.3 percent over social security wage base discretionary contribution. This is pretty straight forward for W-2 employees, but plan compensation for the LLC members is their share of net earnings (business ordinary income plus guaranteed payments). Ordinary income is after the deduction for all plan contributions.

Help - I'm going in circles trying to calculate this!

Posted

See if this works for you. Enter the information in the shaded cells (some won't need to change, because they are properly set for the 2003 year). Then look at Cell D2. If it is blank, you entered the right numbers. If it isn't, you can either follow the instruction to increase or decrease the number in Cell C2 until the message goes away (or gets within 0.01 of the "right" number and starts repeating), or, if your system allows macros, hit cntl-shift-I (that runs the macro I put in there that does nothing more than copy the information from Cell C23 into Cell C2) a few times until the message goes away (or gets within 0.01 of the "right" number and starts repeating).

Let me know if you think it works or not!

Note that there are very few edit checks in the spreadsheet, so I have no idea what will happen if you put in "illogical" numbers, like negative deferrals or deferrals in excess of compensation.

Net_Earned_Income_Determination.xls

Guest schmpat
Posted

How creative! Its exactly what I needed, thank you so much!

Posted

Remember to hand check the numbers to make sure they work.

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