covered by a pension plan

Technical topics regarding tax preparation.
#1
zl28  
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client is a partner in a firm that has a 401k

he doesn't contribute anything in 2018

can he contribute to a deductible ira?
 

#2
sjrcpa  
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Is he eligible to participate in the 401(k) Plan?
 

#3
zl28  
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he is, but is that the litmus test?

bc for a defined benefit plan, the litmus test i think is if they are eligible

for a 401k, i thought it may be whether they gave any money for forfeited any money

not sure what mean by forfeited - i guess the company offer to put in money on behalf and you decline,

which seemed a little strange to me as i'm only familiar with 401k's where you put in $ and then maybe there is a matching

contribution.
 

#4
Doug M  
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The ER might be doing a safe harbor non-elective contribution. Or a profit sharing contribution. If that happened, he is a participant.
 

#5
zl28  
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got you...that's right safe harbor non-election..forgot about that.

if there is no safe harbor non-elective contribution and no profit sharing.....
the company only makes a matching contribution if you contribute to a pension.....

so if the client didn't contribute anything to the 401k under the above circumstances,
he shouldn't be deemed an active participant in a pension plan, agree?
 

#6
Doug M  
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agree
 


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