abctax55
Level 15
05-20-2022
12:06 PM
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"...his (my emphasis) business net income" - Your client doesn't *have* business net income. The Corp does.
For an S-Corp, retirement plan contributions are based on compensation (aka W-2, aka subject to SE tax). While the income/loss of the S-Corp does flow thru to the shareholder, it is not considered compensation and can't be used to compute a retirement plan contribution.
HumanKind... Be Both