r2i forum

Thanks... all who responded.

Thanks for the patience exercised. Yes I was not as detailed as I should have been. In my defence, if you look at the original posting my question was.... ====================================================== Does it make sense to pay the 15.3% on the extra salary I need to pay myself in order to ...

here goes.... [SIZE=2]a) Calculate Max 401(k) Contribution allowed (self and employer): [B][U]40500 ( 15500 +25000)[/U][/B][/SIZE] [SIZE=2](b) Calculate income tax saved on (a) by multiplying (a) by your marginal tax rate: [/SIZE] [SIZE=2][B][U]40500*.35 = 14175[/U][/B][/SIZE] [SIZE=2](c) Calculate ...

Tweedledee....thanks for your kind words.

I guess I'm being ignored now..... did i do/say something wrong?

[SIZE=2][U]Suppose you pay yourself $100K [/U](a) Calculate Max 401(k) Contribution allowed (self and employer): [/SIZE] [SIZE=2][B][U]40500 ( 15500 +25000)[/U][/B][/SIZE] [SIZE=2](b) Calculate income tax saved on (a) by multiplying (a) by your marginal tax rate: [/SIZE] [SIZE=2][B][U]40500*.35 ...

Bobus, You are right. I did the math in my mind and was lazy in typing it up. You sound like a big brother. Appreciate your help and sometimes a kick in the rear is required... (My approximation math was correct except I put the the nos in the wrong column in my head ...sorry) Here goes: [U][SIZE=2 ...

I'll defer approx 5K in tax liability with the 100K.
I'll pay approx an extra 1200 in FICA to do so.

I'm leaning towards paying higher salary...

IC

Bobus, You seem like a very helpful person and I am really appreciative of that. The 20K figure was not party talk. It was in a formal environment. Anyways, bottom line.... Let's say I have the option of paying myself between 60 - 100K (reasonable nos. from an industry perspective). Will paying the ...

Reasonable from what I heard is very subjective. Some CPA's have told me that I can get away with paying myself 20K a year. The facts are however that I bill @ 110$/ hr for myself and all that and only that is the co's revenue. So, if I pay the 120K a year as salary to myself, then I can put aside a ...