HR 10 / Keogh plan

[Guest ppapdx]

An HR-10 plan is defined as a qualified plan that covers at least one self-employed individual. A self-employed individual is defined as an individual who has earned income. A self-employed individual is defined in IRC §401©(1)(B) and earned income is defined in IRC §401©(2).

An S-Corporation sponsors a 401(k) plan. From what I read online, it appears that a shareholder from an S-Corp can receive a K-1 – which is the “shareholder’s percentage of distribution of the S-Corp’s net profit”. Does a K-1 that a shareholder receives from the S-Corp make them a self-employed individual – and thus makes this an HR-10 plan?

[masteff]

No. http://benefitslink.com/boards/index.php?/topic/54072-sub-s-as-comp/