Evergreen Deferral Election for Sched C / K-1

[austin3515]

I know an eleciton is required before the last day of the plan year, but instead of chasing these guys down every year, can I just have an evergreen election to defer the max allowed every single year?

[12AX7]

If you think about it, why would a deferral election for the Owner be any different that for an Employee? Plans do not require a fresh election for each plan year.

[austin3515]

I did think about it

[12AX7]

I get in trouble if I think too much ! I have a number of LLC plans that were audited by the IRS. They looked at the original deferral election and were good with it. Never thought I would need to refresh the election each year if they chose to defer the max.

[Bird]

Absolutely.

[movedon]

You ought to see the deferral election I use for my own solo k - not only is it evergreen, it's covered in little scratch-outs and initials and dates and all sorts of crap written in the margins. The fact that I do it myself as a pension consultant doesn't make it right, but it's pretty funny at least.

[12AX7]

My deferral election also has my daily lunch order, until I revoke it.