## Profit Sharing S-Corp % for Spouse and Self

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Topic Author
duckfan101
Posts: 13
Joined: Wed Mar 28, 2018 1:42 pm

### Profit Sharing S-Corp % for Spouse and Self

S-corp solo 401k. I max out the 403b on day job, wife is a SAHM helping me out in the business.

Can someone help me figure out the calculations for each person on what can be an employER contribution? As I understand 25% of gross (minus employee contributions)

Would the employER contributions be?
Wife: 8,615.00 - 6,470.15 = 2,144.85 x .25 = \$536.25
Self: 9,000.00 x.25 = \$2,250

Now, since the rules state I must give the same profit sharing amount percentage to both myself and spouse what would I be able to contribute?

See below for most recent paystub:

Summary (Wife)
Description Current Year To Date
Gross Earnings \$1,900.00 \$8,615.00
Pre-Tax Deductions/Contributions \$925.00 \$6,470.15
Taxes \$435.79 \$955.87
Post-Tax Deductions/Contributions \$0.00 \$0.00
Net Pay \$539.21 \$1,188.98
Reimbursements \$0.00 \$0.00
Check Amount \$539.21 \$1,188.98

Summary (Self)
Description Current Year To Date
Gross Earnings \$1,500.00 \$9,000.00
Pre-Tax Deductions/Contributions \$0.00 \$0.00
Taxes \$654.34 \$3,159.04
Post-Tax Deductions/Contributions \$0.00 \$0.00
Net Pay \$845.66 \$5,840.96
Reimbursements \$0.00 \$0.00
Check Amount \$845.66 \$5,840.96

Spirit Rider
Posts: 9520
Joined: Fri Mar 02, 2007 2:39 pm

### Re: Profit Sharing S-Corp % for Spouse and Self

duckfan101 wrote:
Wed Jun 13, 2018 7:09 pm
S-corp solo 401k. I max out the 403b on day job, wife is a SAHM helping me out in the business.

Would the employER contributions be?
Wife: 8,615.00 - 6,470.15 = 2,144.85 x .25 = \$536.25
Self: 9,000.00 x.25 = \$2,250

Now, since the rules state I must give the same profit sharing amount percentage to both myself and spouse what would I be able to contribute?
Your calculation of your wife's contribution is not correct. The maximum employer contribution is 25% of compensation. Any employee elective contributions do not reduce compensation. Total employee + employer annual additions can not exceed 100% of compensation.

Wife: \$8,615.00 * 25% = \$2153.75, <= \$8,615.00 - \$6,470.15 ~= \$2,145 maximum employer contribution.
Self: \$9,000.00 x.25 = \$2,250, <= \$9,000.00 * \$2,144.85 / \$8,615.00 ~= \$2241 maximum employer contribution.