FAQ 967: Budget: Partnership-Maximizing Owner


This is a pro rata plan but I can't seem to get ASC to max the owner/soleprop at her total comp. There are only 2 employees but more than enough to not hit 404 for the plan. However, ee2 is hitting dollar limit 415 -- has excess to be reallocated.


The problem has to do with the reallocating the excess 415 from ee#2. Code the plan "show total contrib" screen for 100% of compensation and run that way. It will mazimize ee#1 to 100% of compensation as long as there is enough money not to exceed 404. Do run the IRC404 report to check.