 |
| Tax Magic #2 |
| |
| |
| |
| Participant |
| OWNER - 60 |
| employee - 54 |
| employee - 27 |
| employee - 26 |
| employee - 27 |
| Totals |
|
|
| |
| Salary |
| $47,000 |
| $33,000 |
| $31,000 |
| $29,000 |
| $23,000 |
| $163,000 |
|
|
Step #1 |
3% vested employer contribution |
| |
| $1,410 |
| 990 |
| 930 |
| 870 |
| 690 |
$4,890 |
|
|
| Step #2 |
401(k) elective deferrals by employees
|
| |
| $20,000 |
| -0- |
| -0- |
| -0- |
| -0- |
$20,000 |
|
|
Step #3 |
additional employer contribution under 'new comparability' testing rules
|
| |
| |
| $27,590 |
| 660 |
| 620 |
| 580 |
| 460 |
| $29,910 |
|
|
| |
| |
Total Tax
Deductible
Allocation |
| $49,000 |
| 1,650 |
| 1,550 |
| 1,450 |
| 1,150 |
| $54,800 |
|
|
|