The Motley Fool Discussion Boards

Previous Page

Education, Jobs & Professions / Self-Employed Fools

URL:  http://boards.fool.com/hear2stay-i-have-an-s-corp-your-salary-and-21849337.aspx

Subject:  Re: S-Type Corp Retirement Plans Date:  1/3/2005  2:59 PM
Author:  saraswati1 Number:  10940 of 14985

Hear2Stay
I have an S-Corp. Your salary and bonuses are the determining amount for figuring contributions to retirement funds. Distributions are not included. Although I originally paid myself and my partner a lower salary in order to reduce payroll taxes, our accountant advised paying a higher salary and bonusing most of our profits at the end of the year, in order to maximize our retirement contribution capability. This method, in turn, also will lower potential franchise taxes.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us