Guest Tired TPA Posted September 30, 2009 Posted September 30, 2009 401K plan document defines compensation as 3401(a) compensation. Also states that "compensation for any self-employed individuals shall be equal to such individual's earned income". In an LLC, which gives the owners a W-2 reporting wages subject to self-employement taxes, and then also gives the owners a K-1 showing negative self employement income, is the owner's total self-employment income the net of W-2 and K-1 self employement income? (obviously the answer is yes). I know that an LLC should not really be giving owners W-2 wages - but it happens. Now, situation is that owners have been allowed to defer on W-2 wages and the ADP testing has been done using W-2 wages. Now, in September, we are getting the K-1s and have negative self employment income. Surely this happens all the time. What is the correct solution? Can you point me to an ERISA reg? Thanks! Double post found here: http://benefitslink.com/boards/index.php?s...mp;#entry187400
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