Combo plan deduction issues

[Jakyasar]

Hi

CB & DC plan combo, DC has 3% NESH 3%

Controlled group, 2 schedule c, both entities adopted the plans.

Employees, some paid from both and some separately from each entity.

Sch X had 500k net c

Sch Y had 200k losses

There are mandatory CB, SH & PS contributions attributable to both entities.

Q1, for all purposes,need to combine the income, correct?

Q2, should each entity fund its own portion of contributions?

Q3, as to deduction, cannot exceed combined sch s, correct?

Anything else I didn’t think of?

Thanks

[Jakyasar]

Any courageous comments?

[Lou S.]

Q1 - Yes. Both have adopted so X & Y should be aggregated.

Q2 - Since it's a controlled group I'm not sure it matters but that's a question for the CPA as to how they want to fund and deduct. Not always but typically I'll see the EE cost attributed to the EEs of X on X Sch C and Y on Y with the owner on the 1040. But in a CG (as opposed to ASG) I'm pretty sure you can split the deduction anyway you want.

Q3 - I believe that is correct.