jkdoll2 Posted November 26, 2008 Posted November 26, 2008 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
WDIK Posted November 26, 2008 Posted November 26, 2008 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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