mschwechter
Apr 27 2005, 08:55 AM
Assume an LLC that normally has a negative net K1, can the owner still have a 401(k) Plan and put in deferrals and still receive a match?
If there is a negative K1, can the partner still defer on his draw even if there is a negative K1?
Blinky the 3-eyed Fish
Apr 27 2005, 01:16 PM
No, on either the deferrals or the match. The 415 limit is the LESSER of 100% of pay or $42,000 (in 2005). His annual addition limit is therefore $0.
I should add to this answer just a bit. Obviously a catch-up contribution, if the person is 50 or over, doesn't count as an annual addition, but of course with no salary you can't defer anything either.
mschwechter
Apr 27 2005, 04:23 PM
Kinda what I thought, thanks