thepensionmaven Posted October 8, 2020 Posted October 8, 2020 Owner's wife is under age 50, made total of $23K deferrals to SHNE plan. $17K to Roth, $6,000 pre-tax. Accountant asking even though Roth is not deductible, can be used to satisfy SHNE contribution. I don't see how this is permissible as document does not distinguish excess Roth v excess pre-tax.
MWeddell Posted October 8, 2020 Posted October 8, 2020 Neither the Roth contributions nor the pre-tax elective deferrals can be used as the safe harbor employer nonelective contributions.
thepensionmaven Posted October 8, 2020 Author Posted October 8, 2020 Thought not. Since made by 12/31, how can you pay excise tax on non-taxable contribution??
BG5150 Posted October 8, 2020 Posted October 8, 2020 She made it before 12/31/19? Isn't it then just a 402g excess? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Luke Bailey Posted October 8, 2020 Posted October 8, 2020 6 hours ago, BG5150 said: She made it before 12/31/19? Isn't it then just a 402g excess? Right. Seems like 402(g) excess. Whether you distribute Roth or pre-tax (plan document should tell you which), she will pay tax twice on this amount. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
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