Reference no: EM132463081

Question 1: How do the limitations on 401(k) contributions impact the deductibility?

Problem 1: What are the limitations on employee deferrals?

Problem 2: What are the limitations on employer match?

Problem 3: What are the limitations on the profit-sharing contributions?

Problem 4: What are the annual limitations for defined contribution plans and how do they impact the deductibility of the contributions?

Problem 5: Does the compensation limit for qualified plans impact the deductibility?

Problem 6: What is the max amount of compensation allowed in a taxable year to defer their salary?

Question 2: What is the timing of contributions and when do they need to be made?

Problem 1: When are the employee deferrals or contributions deductible?

Problem 2: What about the 401(k) offer catch up contributions for some of the older employees? When and how are they deductible?

Problem 3: What is timing and requirements for deductibility of the 401(k) matching contributions?

Problem 4: What is "on account of such taxable year" for a contribution deemed made on the last day of the preceding year?

Question 3: What are the other requirements for defined-contribution plans to be deductible?

Problem 1: Does XCite meet the requirements of a deductible defined-contribution plan under the IRC?

Problem 2: Are there any additional limitations on owner-employees (highly compensated executives)?

Problem 3: If an excess contribution is made, is it subject to any consequences, corrections or penalties?

Problem 4: Are excess contributions deductible?

Problem 5: If XCite has an operating loss can they contribute to the "profit sharing" plan?

Problem 6: What are the so-called nondiscrimination rules of qualified plans and Is the plan discriminatory under 401(k) and 401(m)?

Problem 7: What impact does failing the discrimination rules have on the deductibility?

Problem 8: When are the additional corrective contributions deductible?

Attachment:- tax research.rar