tlott
Dec 1 2003, 05:15 PM
a physician is employed at a hospital & contributes the max to their 403b plan. they also do consulting on the side that has no relationship with their hospital empoyment and they earn NET $25k. can they implement a simple plan on that schedule C income ?
tim
Gary Lesser
Dec 2 2003, 09:25 AM
If a person participated in a 403(b) plan and a qualified plan, then combine contributions made to the 403(b) account with contributions to the qualified contribution plan and simplified employee pensions of all corporations, partnerships, and sole proprietorships in which the individual has more than 50% control. The elective limit is a plan limit as well as an individual limit.
lgolden
Dec 16 2003, 08:36 PM
A similar question to ponder. An owner of a corporation also has an unrelated "side" business that generates Schedule C income. He has PS plan for the corp and a SIMPLE plan for his self-employment income. Can he get the full $40k under both plans? I am thinking yes, but couldn't find anything specific. Any help is greatly appreciated.
Gary Lesser
Dec 17 2003, 06:36 PM
Rule similar to above. If owner has more than 50% control of both entities, the limit is aggregated. [IRC 415(h)]
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