RayJJohnsonJr Posted March 23, 2022 Posted March 23, 2022 Hi. For 2021, What is the Max PS contribution in these circumstances. 1 person plan, S Corp, age 38, maxed out 401(k) deferrals of $19,500, W2 of $25,500. I thought 20% X $25,500 = $5,100. This Contribution Calculator at https://www.calcxml.com/calculators/qua12 says max PS is $4740. (If anyone tries out the online calculator, select self-employed, not Corporation, to get the S Corp quote)
Popular Post Bri Posted March 23, 2022 Popular Post Posted March 23, 2022 If he has a W-2, that's the amount to multiply by 25% (not 20%). Should be 6,375. Of course, since that would be a 415 problem, he should limit the PS to 6,000. You definitely don't do self-employed calculations for an S-corp. shareholder as you would a Schedule C filer. Bird, Luke Bailey, Lou S. and 3 others 6
Riley Britton Posted March 24, 2022 Posted March 24, 2022 I agree with Bri. An S Corp only uses W2 comp. If you run your calculator using Corporation, you will get the $6,375.
RayJJohnsonJr Posted March 25, 2022 Author Posted March 25, 2022 Thank you both, my brain went AWOL. Riley Britton 1
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