Earl Posted August 31, 2009 Posted August 31, 2009 I have a Sole Proprietor that had no income in 2008 but has a required contribution to his DB Plan. He is now terminating his plan. Can the contribution that was not deducted be paid to him with no taxes or must he roll it over to avoid taxes. He is actually retiring so there will be no future earned income. Thanks CBW
Andy the Actuary Posted August 31, 2009 Posted August 31, 2009 Consult benefits council. There may be an old IRS ruling that would permit the nondeducted contributions to be included as part of the investment in a contract to avoid double taxation. 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.
david rigby Posted August 31, 2009 Posted August 31, 2009 Consult benefits council.Or benefits counsel, at your discretion. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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