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Subject:  Re: S-Type Corp Retirement Plans Date:  12/16/2004  5:01 PM
Author:  Hear2Stay Number:  10889 of 15018

Another question :)

I'm reading "Tax Savy for Small Business". It's a great book, but I am confused on one point.

For SEPs it reads that the maximum annual contribution is the lesser of:
- $40,000
- 25% of employee's compensation or 25% of the net business income of an owner...

My question is, as a 90% shareholder of an S-Type Corporation, could my distributions be counted in that 25% or only my salary?

Thanks again!

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