how to maximize retirement contributions


R

RobJ

I'm currently self employed and my business is organized as
a California S-corp. I am the sole shareholder and employee
of the S-corp. The S-corp pays me a salary and contributes
to my SEP.

I now have an opportunity to join another company as an
employee, but will continue to do some consulting through my
S-corp. I will contribute to the new employer's 401(k) plan
and the employer will also contribute. The employer
contribution is tied to company performance and does not
depend on my contribution. I assume it will be in the $5K -
$10K range per year.

My question is how to maximize my total retirement
contribution between the 401(k) my S-corp contribution. I'm
estimating that the total money available from the S-corp to
pay me a salary + payroll taxes + retirement contribution
will be around $50K per year. With the SEP (and ignoring
payroll taxes for simplification), the S-corp could pay me a
$40K salary and contribute $10K to the SEP. Is there another
form of retirement plan that the S-corp could adopt that
would increase the portion of the available $50K that can go
to the retirement account? I don't care about my salary from
the S-corp. My goal is to get as much combined money per
year into the 401(k) and S-corp plans.

Thanks for your help!

Rob
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top