C-corp to S-corp

[RightOn]

Taxpayer is the 100% owner of a C-corp. What will happen to the retained earnings if he converts the C-corp to a S-corp?

[ChEAr$]

Taxpayer is the 100% owner of a C-corp. What will happen to the retained earnings if he converts the C-corp to a S-corp?

The account is maintained on the books and distinguished from previously taxed earnings
(retained). Segregation is the key here.

[JON]

And he can make

an election to pull it out. If 15% is going away people should think about it.?

[JohnH]

I'd strongly consider pulling it all out since the max rate is 15% this year. If cash reserve is a problem, it might require a couple of extra transactions, but probably worth it. (Unless of course anyone suffers from the delusion that tax rates may be coming DOWN in the foreseeable future).