SIMPLE Plan – 2 Sch C’s – req’d to aggreagte

Submitted by David McIntee on Sun, 2017-03-12 15:47

I have a client who has 2 businesses. The existing, a professional writer for Pharma, has a SIMPLE to which she contributes near the max each year.

This year she started a new venture, a novelist. No where near the NYT or Amazon top 100. LOSS in 2016!

I’m thinking that these businesses should be on separate Schedule C’s AND that she contributes to the SIMPLE based on the existing biz. If aggregated, there is a significant drag on the contributions. Anyone have had this situation in the past?

Thanks.



Submitted by Alan - IRA critic on Sun, 2017-03-12 17:19

Both businesses and their employees must be covered under the SIMPLE IRA. See B-5 and C-1 in Notice 98-4 here: https://www.irs.gov/pub/irs-drop/not98-4.pdf



Add new comment

Log in or register to post comments