Owner compensation in short plan year

How do you calculate the owner's comp in a short plan year?

Doctor gets Schedule C, but is terminating Safe Harbor plan on 10/31 and wants to close up the small plan before EOY 2020..

How is her compensation calculated?  Is it zero b/c it's not determined until 12/31?  Or do they have to wait until next year and take 5/6 of the net income?

This was discussed in another thread on here not too long ago. Consensus seemed to be that the owner had $0 comp for the short plan year since their comp is deemed to be received on 12/31.

Here's the thread.

https://benefitslink.com/boards/index.php?/topic/66365-owner-comp-mid-year-plan-termination/

BG150, read all of the posts. Don't just settle for the consensus.

I think we are going to consider the income earned on 12/31.  So no income for short plan year ending 10/31.  It's ok, b/c owner did not make deferrals and probably doesn't want to fund his own safe harbor--keep costs to a minimum.

I don't agree that a short year means $0 income because it is earned on 12/31.   There is P&L for that period.  If for some reason instead of a short plan year the owner had a short tax year, there would be income for the short period.  It is just unknown without going through all the calculations.  

My two cents

This topic was just discussed in the ASPPA All Access session on compensation. The speakers agreed that the self-employed individual does have earned income for the short plan year.

55 minutes ago, C. B. Zeller said:

This topic was just discussed in the ASPPA All Access session on compensation. The speakers agreed that the self-employed individual does have earned income for the short plan year.

Thank you, C.B. Zeller!