metsfan026 Posted September 2, 2021 Posted September 2, 2021 This one I'm pretty sure is easy, but I just wanted to make 100% sure since someone asked me. Can a sole prop, schedule-C have a solo-k AND cash balance plan?
shERPA Posted September 2, 2021 Posted September 2, 2021 Yes. Mike Preston and Bill Presson 1 1 I carry stuff uphill for others who get all the glory.
metsfan026 Posted September 2, 2021 Author Posted September 2, 2021 What I thought, just wanted to confirm. Thanks!
Mike Preston Posted September 2, 2021 Posted September 2, 2021 But be aware that it is highly likely that the employer contribution to the K plan must be 6% or less of net compensation or else the plan sponsor will run afoul of 404(a)(7).
CuseFan Posted September 2, 2021 Posted September 2, 2021 Exactly - we do these all the time: deferrals, catch-up if eligible, 6% PS (be careful to use correct "compensation") and max CB. And if they have the income to support it, do some voluntary after-tax up to the DC 415 limit and then in-plan conversion to Roth. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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