Need answers quick - Posted by cgabhart

Posted by Dave Murray, Ohio CPA on July 21, 2003 at 10:37:22:

I don’t have a great deal of experience with defined benefit plans, but I do know that the required contribution is actuarially determined based on the demographics of the participant(s) [which incidentally usually makes this an expensive plan to administer] as well as the salary of the participant(s). Thus, if the salary of the participant (you) is very low, it’s likely that just a minimal contribution is needed.

Need answers quick - Posted by cgabhart

Posted by cgabhart on July 17, 2003 at 19:55:48:

I just set up a Defined Benefit Pension Plan for my S corp. I had a few deals in the works that would have given me a few hundred grand in ordinary income this year and the next few. Fortunatly I was able to defer the profits untill later.
When I set up the plan I said I would make about 150-300 this year and 300-600 next year, I was also supposed to put 50k into my DVPP. Well due to some reasons I am able to defer or zero out most of that money. What will happen if I only make 50-150k on the books???
I alread have my Employee Identification Number. Help…