Client has a sole proprietorship and a single member LLC (disregarded entity) - can I combine the profit for both to determine how much they can contribute or can I only use the sole proprietorship for the contribution?
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Are these two separate and distinct businesses on two Schedule Cs? -
Yes they are.Comment
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As a sole proprietor for federal purposes (LLC is disregarded), all the business are just you, and the 401k is just you, so I say yes, you can combine. Even if you had separate 401k plans set up under different EINs, your annual limit would still be based on the total earnings, so it's not like it makes any difference. The DBA name on your 401k, if any, doesn't really mean much, I'm still using one that I set up under a DBA I don't use anymore."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
"That's enough! When you didn't know what you were talking about, you really had something! [to Curly]" -Moe HowardComment
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Thank you - I could not find anywhere that this is clarified.Comment
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