Yes. Elective deferral contributions and profit sharing contributions of not more than 6.0% do not count against the deductible limit described above. As long as the 401(k) plan is limited to salary deferrals and employer contributions of not more than 6.0%, you can make contributions to both plans.
Yes. Your existing Profit Sharing plan can be terminated and you can set up a OnePersonPlus Defined Benefit plan. However, if you have already made your profit sharing contributions for the current plan year, those contributions might not be deductible if the Defined Benefit plan is established for the same year. In any year in which an employer maintains a Defined Benefit plan and a defined contribution plan, the maximum deductible limit for both plans is the GREATER OF (1) 25% of total compensation, or (2) the amount necessary to fund the Defined Benefit plan. Usually, the contribution amount for the Defined Benefit plan exceeds 25% of total compensation, so any employer contribution to the defined contribution plan might not be deductible this year. Please talk to your tax advisor and refer to IRS Publication 560 concerning deductibility and carryovers to future years. However, under the Pension Protection Act of 2006, a profit sharing contribution of not more than 6.0% will not affect the maximum defined benefit contribution. In essence, an employer can make BOTH a maximum Defined Benefit plan contribution and an employer profit sharing contribution of up to 6.0%.
You can participate in both plans if the two companies are not part of a controlled group — that is, two or more firms controlled by the same five or fewer people.
Generally, yes. If you own other businesses and you are considered part of a controlled group or affiliated service group, then all businesses must be covered under the plan.
All eligible employees must be included in a Defined Benefit plan. Generally, we will recommend using a Cash Balance plan and a 401(k)/Profit Sharing plan if there are non-family member employees. By combining the two plans, depending on the ages of the employees, we can often control the cost of providing benefits for employees. In addition, selecting a 1-year/1,000 hours entry requirement will prevent any part-time employees from entering the plan.
Yes. Elective deferral contributions and profit sharing contributions of not more than 6.0% do not count against the deductible limit described above. As long as the 401(k) plan is limited to salary deferrals and employer contributions of not more than 6.0%, you can make contributions to both plans.
Yes. Your existing Profit Sharing plan can be terminated and you can set up a OnePersonPlus Defined Benefit plan. However, if you have already made your profit sharing contributions for the current plan year, those contributions might not be deductible if the Defined Benefit plan is established for the same year. In any year in which an employer maintains a Defined Benefit plan and a defined contribution plan, the maximum deductible limit for both plans is the GREATER OF (1) 25% of total compensation, or (2) the amount necessary to fund the Defined Benefit plan. Usually, the contribution amount for the Defined Benefit plan exceeds 25% of total compensation, so any employer contribution to the defined contribution plan might not be deductible this year. Please talk to your tax advisor and refer to IRS Publication 560 concerning deductibility and carryovers to future years. However, under the Pension Protection Act of 2006, a profit sharing contribution of not more than 6.0% will not affect the maximum defined benefit contribution. In essence, an employer can make BOTH a maximum Defined Benefit plan contribution and an employer profit sharing contribution of up to 6.0%.
You can participate in both plans if the two companies are not part of a controlled group — that is, two or more firms controlled by the same five or fewer people.
Generally, yes. If you own other businesses and you are considered part of a controlled group or affiliated service group, then all businesses must be covered under the plan.
All eligible employees must be included in a Defined Benefit plan. Generally, we will recommend using a Cash Balance plan and a 401(k)/Profit Sharing plan if there are non-family member employees. By combining the two plans, depending on the ages of the employees, we can often control the cost of providing benefits for employees. In addition, selecting a 1-year/1,000 hours entry requirement will prevent any part-time employees from entering the plan.
Yes. Elective deferral contributions and profit sharing contributions of not more than 6.0% do not count against the deductible limit described above. As long as the 401(k) plan is limited to salary deferrals and employer contributions of not more than 6.0%, you can make contributions to both plans.
Yes. Your existing Profit Sharing plan can be terminated and you can set up a OnePersonPlus Defined Benefit plan. However, if you have already made your profit sharing contributions for the current plan year, those contributions might not be deductible if the Defined Benefit plan is established for the same year. In any year in which an employer maintains a Defined Benefit plan and a defined contribution plan, the maximum deductible limit for both plans is the GREATER OF (1) 25% of total compensation, or (2) the amount necessary to fund the Defined Benefit plan. Usually, the contribution amount for the Defined Benefit plan exceeds 25% of total compensation, so any employer contribution to the defined contribution plan might not be deductible this year. Please talk to your tax advisor and refer to IRS Publication 560 concerning deductibility and carryovers to future years. However, under the Pension Protection Act of 2006, a profit sharing contribution of not more than 6.0% will not affect the maximum defined benefit contribution. In essence, an employer can make BOTH a maximum Defined Benefit plan contribution and an employer profit sharing contribution of up to 6.0%.
You can participate in both plans if the two companies are not part of a controlled group — that is, two or more firms controlled by the same five or fewer people.
Generally, yes. If you own other businesses and you are considered part of a controlled group or affiliated service group, then all businesses must be covered under the plan.
All eligible employees must be included in a Defined Benefit plan. Generally, we will recommend using a Cash Balance plan and a 401(k)/Profit Sharing plan if there are non-family member employees. By combining the two plans, depending on the ages of the employees, we can often control the cost of providing benefits for employees. In addition, selecting a 1-year/1,000 hours entry requirement will prevent any part-time employees from entering the plan.
Yes. Elective deferral contributions and profit sharing contributions of not more than 6.0% do not count against the deductible limit described above. As long as the 401(k) plan is limited to salary deferrals and employer contributions of not more than 6.0%, you can make contributions to both plans.
Yes. Your existing Profit Sharing plan can be terminated and you can set up a OnePersonPlus Defined Benefit plan. However, if you have already made your profit sharing contributions for the current plan year, those contributions might not be deductible if the Defined Benefit plan is established for the same year. In any year in which an employer maintains a Defined Benefit plan and a defined contribution plan, the maximum deductible limit for both plans is the GREATER OF (1) 25% of total compensation, or (2) the amount necessary to fund the Defined Benefit plan. Usually, the contribution amount for the Defined Benefit plan exceeds 25% of total compensation, so any employer contribution to the defined contribution plan might not be deductible this year. Please talk to your tax advisor and refer to IRS Publication 560 concerning deductibility and carryovers to future years. However, under the Pension Protection Act of 2006, a profit sharing contribution of not more than 6.0% will not affect the maximum defined benefit contribution. In essence, an employer can make BOTH a maximum Defined Benefit plan contribution and an employer profit sharing contribution of up to 6.0%.
You can participate in both plans if the two companies are not part of a controlled group — that is, two or more firms controlled by the same five or fewer people.
Generally, yes. If you own other businesses and you are considered part of a controlled group or affiliated service group, then all businesses must be covered under the plan.
All eligible employees must be included in a Defined Benefit plan. Generally, we will recommend using a Cash Balance plan and a 401(k)/Profit Sharing plan if there are non-family member employees. By combining the two plans, depending on the ages of the employees, we can often control the cost of providing benefits for employees. In addition, selecting a 1-year/1,000 hours entry requirement will prevent any part-time employees from entering the plan.
Yes. Elective deferral contributions and profit sharing contributions of not more than 6.0% do not count against the deductible limit described above. As long as the 401(k) plan is limited to salary deferrals and employer contributions of not more than 6.0%, you can make contributions to both plans.
Yes. Your existing Profit Sharing plan can be terminated and you can set up a OnePersonPlus Defined Benefit plan. However, if you have already made your profit sharing contributions for the current plan year, those contributions might not be deductible if the Defined Benefit plan is established for the same year. In any year in which an employer maintains a Defined Benefit plan and a defined contribution plan, the maximum deductible limit for both plans is the GREATER OF (1) 25% of total compensation, or (2) the amount necessary to fund the Defined Benefit plan. Usually, the contribution amount for the Defined Benefit plan exceeds 25% of total compensation, so any employer contribution to the defined contribution plan might not be deductible this year. Please talk to your tax advisor and refer to IRS Publication 560 concerning deductibility and carryovers to future years. However, under the Pension Protection Act of 2006, a profit sharing contribution of not more than 6.0% will not affect the maximum defined benefit contribution. In essence, an employer can make BOTH a maximum Defined Benefit plan contribution and an employer profit sharing contribution of up to 6.0%.
You can participate in both plans if the two companies are not part of a controlled group — that is, two or more firms controlled by the same five or fewer people.
Generally, yes. If you own other businesses and you are considered part of a controlled group or affiliated service group, then all businesses must be covered under the plan.
All eligible employees must be included in a Defined Benefit plan. Generally, we will recommend using a Cash Balance plan and a 401(k)/Profit Sharing plan if there are non-family member employees. By combining the two plans, depending on the ages of the employees, we can often control the cost of providing benefits for employees. In addition, selecting a 1-year/1,000 hours entry requirement will prevent any part-time employees from entering the plan.
Yes. Elective deferral contributions and profit sharing contributions of not more than 6.0% do not count against the deductible limit described above. As long as the 401(k) plan is limited to salary deferrals and employer contributions of not more than 6.0%, you can make contributions to both plans.
Yes. Your existing Profit Sharing plan can be terminated and you can set up a OnePersonPlus Defined Benefit plan. However, if you have already made your profit sharing contributions for the current plan year, those contributions might not be deductible if the Defined Benefit plan is established for the same year. In any year in which an employer maintains a Defined Benefit plan and a defined contribution plan, the maximum deductible limit for both plans is the GREATER OF (1) 25% of total compensation, or (2) the amount necessary to fund the Defined Benefit plan. Usually, the contribution amount for the Defined Benefit plan exceeds 25% of total compensation, so any employer contribution to the defined contribution plan might not be deductible this year. Please talk to your tax advisor and refer to IRS Publication 560 concerning deductibility and carryovers to future years. However, under the Pension Protection Act of 2006, a profit sharing contribution of not more than 6.0% will not affect the maximum defined benefit contribution. In essence, an employer can make BOTH a maximum Defined Benefit plan contribution and an employer profit sharing contribution of up to 6.0%.
You can participate in both plans if the two companies are not part of a controlled group — that is, two or more firms controlled by the same five or fewer people.
Generally, yes. If you own other businesses and you are considered part of a controlled group or affiliated service group, then all businesses must be covered under the plan.
All eligible employees must be included in a Defined Benefit plan. Generally, we will recommend using a Cash Balance plan and a 401(k)/Profit Sharing plan if there are non-family member employees. By combining the two plans, depending on the ages of the employees, we can often control the cost of providing benefits for employees. In addition, selecting a 1-year/1,000 hours entry requirement will prevent any part-time employees from entering the plan.