Cash Balance (CB)+Profit Sharing (PS) Combo deduction - non-PBGC Plan

[Jakyasar]

Hi

There is always a first time.

Husband&wife (owner and spouse - no other employee) - Virginia sub-s corporation, investment advisors

Just found out that, they may have deposited over 6% of profit sharing limit during 2020 (not in 2021). The 31% test does not work as it is a large CB contribution.

6% PS was supposed to be 34k but possibly put in 50k during 2020 thus 16k overage. This is separate than the 401k deferrals.

CB was 300k

31% limit is 176k

If they made the excess 16k PS contribution during 2020, can they simply pay 10% excess tax and still take 334k deduction?

What other solution(s) can be recommended?

Thank you

[Mike Preston]

Fire somebody. Pay taxes.