pgold Posted February 6, 2017 Posted February 6, 2017 Are employee deferrals included in 415? Salary 70,000 defers 18,000 What is max Profit Sharing Contribution?
K2retire Posted February 6, 2017 Posted February 6, 2017 Yes, deferrals are included in the 415 limit.
BG5150 Posted February 6, 2017 Posted February 6, 2017 18 minutes ago, pgold said: Are employee deferrals included in 415? Salary 70,000 defers 18,000 What is max Profit Sharing Contribution? Over age 50? 41,000 for 2016. 42,000 for 2017. Under age 50? Subtract 6,000 from each. This, of course, only applies if: 1) testing passes 2) the amounts do not put ER over the deductible limit QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Tom Poje Posted February 6, 2017 Posted February 6, 2017 just to be clear - the deferrals don't count toward the 25% deductibility
K2 Posted February 6, 2017 Posted February 6, 2017 If this was a solok then the Profit sharing part would be limited to the deductibility limit of 25% of $70,000, or $17,500. The total allocation to the owner/participant would be $35,500. If catch up eligible, add another $6,000. The actual 415 limit is $53,000 for 2016. Take out $18,000 in deferrals and there is $35,000 left. Plus again $6,000 if catch up eligible.
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