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Posted

Doctor owns 100% company - wife works there and gets W-2. Company gets taxed as a sole prop

The doctors gross comp gets reduced by 50% FICA and contribution.

Does the wifes comp get reduced also becuase of attribution? Even though she is not the owner - he is?

Thanks

Posted
Does the wifes comp get reduced also becuase of attribution?

Assuming the definition of compensation in the plan corresponds to W-2 wages for the spouse, I do not believe there would be any reduction because the self-employment tax does not apply.

...but then again, What Do I Know?

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