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Where can I deduct this contribution?


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Plan Sponsor is a Corporation, of which client is sole owner. A partnership has also adopted the plan. The corporation generates losses.

He is over age 59.

Let's assume his DB plan allows a distribution from the plan.

Here's what he wants to do:

Put in his required contribution. Deduct it on page 1 of his 1040, not his corporate return.

Then take a distribution of approx. twice that amount into his Roth plan. So page 1 will show 0 earned income. a $200 k distribution from Retirement Plan, and a $100k reduction for Retirement plan contributions.

Yes? No?

Posted

Double Post - See Defined Benefit Board

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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