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Can we really make significantly higher contributions for owners?

April 26, 2017contributions owners significantly

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Can we really make significantly higher contributions for owners?

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Yes, as long as the plan is properly designed. IRS regulations allow for some disparity, so that some employees can defer more of their compensation while others take more of it in cash. A qualified plan must not discriminate in favor of highly compensated employees, but the IRS has a process called cross-testing that allows us to convert contributions to retirement benefits for nondiscrimination testing.