Sole Prop, PS Plan, Cont Calculation

I just need some clarification.  I know how to do the calculation.  The profit figure to use is line 7 of the Schedule C?

Line 7 profit
multiply by 1402(a)(12) deduction (.9235)
calculate and deduct FICA
calculate and deduct MED
Back into plan contribution

Add it all up and the result is Line 7

Right? I want to explain it succinctly to the financial advisor.

 

Actually, I think you want line 31 for a sole prop as your starting point. You might find this publication useful. https://www.irs.gov/publications/p560

Yes... I thought it through.  I guess I always assume a Schedule C filer is the only employee.  On the Schedule C there is a spot for pension deduction in Part II Expenses but that is for the pension contribution for the employees (if there are any), not the owner.  Line 31 of the Schedule C is the number to use for the calculation. 

Looking at the forms... where does the owner deduct his/her pension contribution?

 

1 hour ago, Calavera said:

deduct his/her pension contribution on the Schedule 1 Form 1040 line 16.

EXCELLENT!  Thanks

I looked and looked and obviously skimmed over that .  Appreciate it.  

What are the potential legal implications and challenges faced by retirement plans when an invalid beneficiary designation is discovered, and how can plan sponsors navigate this situation to ensure fair and appropriate distribution of benefits?