FAQ - Contributions

Contributions

What are the contribution limits in 2017?

In 2017 you can contribute up to $54,000 if you’re under the age of 50 and $60,000 if 50 or older. Your contribution is made up of your elective deferral and your profit sharing. You’re able to contribute all of your self employment income up to $18,000 (dollar for dollar)…Click for more

Contributions

Do you need profits in order to make contributions to a Profit-Sharing Plan?

NO. Of course having profit would probably make it easier to actually contribute something however, contribution to a profit sharing plan is discretionary. There is no set amount of profits that you need to make to contribute to profit-sharing plans.

Contributions

I have a Corporation and pay myself $30,000 annual salary.What is the maximum amount I can contribute to my plan?

$25,000 which is a combination of elective deferral, $7,500 in profit sharing (25% x $30,000).

Contributions

Do I have to contribute to my QRP every year?

NO, you can contributed whenever you want with your elective deferral (your own contribution). You have a maximum that you can contribute, but no minimum requirement.

Contributions

Can I use personal money to transfer into my plan? What money qualifies to put into the plan?

No, you cannot transfer personal money to contribute into the plan. Qualifying contributions consist of rollovers, elective deferrals, employer match contributions, employer profit sharing contributions, and qualified non-elective contributions. New deductible contributions to your plan need to be from your business account, not your personal account. They must come from…Click for more

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