Author Topic: Multiple Business IRAs?  (Read 375 times)

jleo

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Multiple Business IRAs?
« on: September 05, 2019, 08:46:16 PM »
I own 3 businesses and currently have 1 IRA set up for one of them they are all Scorps individually incorporated. Can I set up 2 more simple IRAs for the other 2 businesses or even a sep ira or 401k? Can't seem to find any info on this online any help would be great!

SeattleCPA

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Re: Multiple Business IRAs?
« Reply #1 on: September 06, 2019, 07:47:22 AM »
Your three S corps are considered the same employer for one thing, so you can't double up or triple up for that reason.

Also, employee elective deferrals are per taxpayer. So you contribute $13K in total to all of the Simple-IRA plans you have.

Finally, you may want to talk with your tax adviser about simplifying your reporting structure. It may make sense to make your three S corporations "qualified S corporation subsidiaries" or QSUBs under one parent S corporation. That would mean one 1120S return, one payroll service, one pension (which is basically what you need anyway), etc.

jleo

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Re: Multiple Business IRAs?
« Reply #2 on: September 10, 2019, 04:29:53 PM »
Your three S corps are considered the same employer for one thing, so you can't double up or triple up for that reason.

Also, employee elective deferrals are per taxpayer. So you contribute $13K in total to all of the Simple-IRA plans you have.

Finally, you may want to talk with your tax adviser about simplifying your reporting structure. It may make sense to make your three S corporations "qualified S corporation subsidiaries" or QSUBs under one parent S corporation. That would mean one 1120S return, one payroll service, one pension (which is basically what you need anyway), etc.

Would you say a simple IRA is best option?

Businesses are as follow
Business A Files s-corp= 150k net has the simple IRA on this business and has 4 employees "they all elected not to contribute to the plan"
Business B 1st year in business haven't elected on which way to file either sole or s-corp= 130k net has NO retirement account and has 3 employees
Business c will file as sole as income is low= 35k net has NO retirement account and has 0 employees

I am going to owe a lot this year in taxes and trying to lessen the hit and max out IRAs as much as I can!

Any advice would be great!

SeattleCPA

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Re: Multiple Business IRAs?
« Reply #3 on: September 11, 2019, 07:15:33 PM »
Your three S corps are considered the same employer for one thing, so you can't double up or triple up for that reason.

Also, employee elective deferrals are per taxpayer. So you contribute $13K in total to all of the Simple-IRA plans you have.

Finally, you may want to talk with your tax adviser about simplifying your reporting structure. It may make sense to make your three S corporations "qualified S corporation subsidiaries" or QSUBs under one parent S corporation. That would mean one 1120S return, one payroll service, one pension (which is basically what you need anyway), etc.

Would you say a simple IRA is best option?

Businesses are as follow
Business A Files s-corp= 150k net has the simple IRA on this business and has 4 employees "they all elected not to contribute to the plan"
Business B 1st year in business haven't elected on which way to file either sole or s-corp= 130k net has NO retirement account and has 3 employees
Business c will file as sole as income is low= 35k net has NO retirement account and has 0 employees

I am going to owe a lot this year in taxes and trying to lessen the hit and max out IRAs as much as I can!

Any advice would be great!

Tax laws say your three businesses are the same employer so you need to offer the Simple-IRA to employees of business B and also if it employs people to employees of Business C.

The Simple-IRA plan, BTW, probably optimizes. The cost to a 401(k) plan (admin, 5500s, insurance, and then a bigger match) will eat up the benefits you as owner get for bigger deductions.