Pammie57 Posted January 5, 2017 Posted January 5, 2017 I got a call from a broker today - we service a mutual retirement plan client. The client is a Subchapter S. The owners deferred throughout the year weekly on compensation they received. Now they are asking if they can max out. He deferred 13,372.87 through the year and she deferred 12,980.70, so they obviously did not reach the 18,000. They are not 50 yet. His comp was 222,000 and hers was about 40,000. Is there a way to get more deferrals in for them? Are there normally any K-1s for the owners of Sub S Corp. I get a little confused on whether they can draw a salary and receive a K-1 in addition. They can do a cross tested profit sharing contribution per their document. Any input would be appreciated. Thanks!
BG5150 Posted January 5, 2017 Posted January 5, 2017 The are out of luck for deferrals. S-corp dividends and not eligible comp for qualified plans; just their W-2 wages. They can allocate a PS enough to give them a total of $53,000 (+6,000 if they are over 50). But who knows how much more it'll cost for the staff? Bill Presson 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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