Sole P to Corp

[No Name]

I have a client who had a corporation, went to sole proprietor on the advice of a guy who claimed to be an accountant, then re-incorporated on the advice of a real accountant. Plan documents were done to reflect all of this.

For 2004, I have participants with 2 W-2s, one with sole p EIN and one with corp EIN. Add them together? All but 1 are relatives. (Owner will have little-to-no sole p income but W2 from the corp.)

[Guest curmudgeon]

If all of the entities are participating employers, add them together. If the Sole Prop is taking the deduction make sure you reduce the income, also if using a software, make sure it is aware of the SS withholding on the W2's.