DB/DC Combo Sponsored by LLC with Employees Post-PPA

[Guest Jcarolan]

Has anyone run any PPA valuations for a DB/DC combination that is permissively aggregated for 401(a)(4) sponsored by an LLC where there are employees and the owners take no W-2 wages?

I have two such nightmares currently that I've been actively putting off. I have an excel spreadsheet that would help me do the LLC income split and include the employee cost divided between the two owners since my valuation software will not split out the income across two plans.

Any advice on how to handle the circular equation between contribution and compensation, and how to communicate most effectively with the client, would be appreciated.

Joseph

[mwyatt]

Even more entertaining is contemplating min/max contributions with sole props/K-1 Income. You do realize that given the spreads between min and max funding, you are going to have different Net Earned Income figures for all dependent on what is actually contributed. I've made the decision for second year or later plans with Sch C/K-1 that you pretty much have to go to a beginning of year valuation date (so you don't pull your hair out contemplating ramifications).