allowableOwner compensation
Owner retirement contributions
SEP, SIMPLE or profit-sharing contributions made for the owner's benefit.
Rule
Add back the owner-specific contribution. Employee matching that will continue is not added back.
Evidence lenders expect
- Form 5500 or plan statement
- General ledger
Worked example
As reported
Retirement expense $38,000
In the memo
Owner portion $29,000 added back
The objection you will hear
Adding back employee match.
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