Lame Duck Posted January 11, 2005 Posted January 11, 2005 I have a client who would like to establish a defined benefit plan to provide their maid (63 years old, retiring in five years) with an annual benefit between $15,000 and $20,000. I seem to remember seeing something that allows a householder to sponsor a plan for domestic help, but I haven't been able to find anything on point. Does anyone have any advice?
rcline46 Posted January 11, 2005 Posted January 11, 2005 A plan for Domestics may be established, but there is no deduction permitted. That is because running a household is not a 'trade or business'.
GBurns Posted January 11, 2005 Posted January 11, 2005 What do you think of setting up the domestic as a business then contract with the business for domestic services and have the business have a solo k or whatever for its sole employee? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
Lame Duck Posted January 11, 2005 Author Posted January 11, 2005 That was my thought originally, but I'm not sure the client trusts the employee to take the additional pay to fund the plan.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now