rfahey Posted October 23, 2013 Posted October 23, 2013 Doctor "Smith" is in a medical group professional corporation with 20 other physicians. They have a profit sharing plan ( not a 401K) and they put in the maximum for each doctor yearly ( $51,000 ). All employer funded. Smith also has some 1099 income that he gets from a local Hospital Association. He set up a Solo K Plan for this income and he defers $22,500 into it yearly. Is this allowed ? Can he make a profit sharing contribution to the Solo K plan on $30,000 of net schedule C income also ?? Thank you !!
BG5150 Posted October 23, 2013 Posted October 23, 2013 I don't think 1099 income can be used for retirement plan purposes. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Lou S. Posted October 23, 2013 Posted October 23, 2013 I assume he means, 1099 income reported on a Schedule C seperate from the group practice and that his sole proprietorships is sponsoring the solo-K As long as there are no CG or ASG issues, sure he can have a solo-K for for his seperate business income but given his field I'd be worried about the potential ASG issues and get a legal opion before proceeding.
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