Reference: FIN 412_ project - MIKE AND MARIA ROMAN.docx (coursehero.com) Please answer the below question: 1.
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Reference: FIN 412_ project - MIKE AND MARIA ROMAN.docx (coursehero.com)
Please answer the below question:
1. Suppose Mike implements a safe harbor 401(k) plan with a 100% match up to 4%, and that all coaches are qualified and contribute at least 4% to the plan. How much can he contribute to the SEP for himself? (*Note: Please indicate the computation and where you obtained the number.)
2. Based on the information from question 1 would the plan pass or fail the ACP and ADP testing for HCE and NHCE? Please show your calculation.
For the Question 10 calculation, please see the following for your convenience.
Basic Data | ||||||||
# | Employee | Ownership | Age | Tenure | Salary | Deferral | ADR | Match |
ADP test | Alternative A | Alternative B | ||
HC definition without election* | HC definition with election* | |||
Employee | HC | NHC | HC | NHC |
ACP Test | ||||
HCE | Match | After - Tax | Compensation | ACR |
NHCE | Match | After - Tax | Compensation | ACR |
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: