- 5 -
petitioner paid him on a Schedule C, Profit or Loss From
Business:
Wages, Business Type of
salaries1 income business
Year (Line 7, Form 1040) (Schedule C) (Schedule C)
1994 $12,776 $15,000 Farm management
1995 12,967 18,000 Farming
1996 13,356 15,000 Farm management
1The wages are attributable solely to Darlene, a secretary at the Orange City
Municipal Hospital in Iowa.
Respondent disqualified the plan for years beginning after
July 31, 1993, because allocations to Mr. Van Roekel, an
independent contractor, in fiscal 1994, 1995, and 1996 exceeded
the limits of section 415(c).
Discussion
Section 401(a) lists the qualification requirements of a
pension, profit-sharing, and stock bonus plan. It provides in
part:
SEC. 401(a). Requirements for
Qualification.--A trust created or organized
in the United States and forming part of a
stock bonus, pension, or profit–sharing plan
of an employer for the exclusive benefit of
his employees or their beneficiaries shall
constitute a qualified trust under this
section--
* * * * * * *
(16) A trust shall not constitute a
qualified trust under this section if
the plan of which such trust is a part
provides for benefits or contributions
which exceed the limitations of section
415.
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011