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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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What are the tax benefits/ of a C-corp over an S-corp reguarding

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What are the tax benefits/ of a C-corp over an S-corp reguarding putting net profits in a Roth IRA (for the sole owner), as far as ability to write it off?

LEV :

Hi and welcome to Just Answer!
Theer is no difference for Roth IRA contribution - if you have C-corp or S-corp.

LEV :

Contributions into Roth IRA are not based on type of the corporation but rather on other conditions.
his table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI as computed for Roth IRA purpose.
See here - http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-for-2012

LEV :

For 2012, the maximum you can contribute to all of your traditional and Roth IRAs is the smaller of:
---$5,000 ($6,000 if you’re age 50 or older), or
--your taxable compensation for the year.
For 2013, the maximum you can contribute to all of your traditional and Roth IRAs is the smaller of:
--$5,500 ($6,500 if you’re age 50 or older), or
--your taxable compensation for the year.

Customer:

I heard it was 16,000 for a C-Corp, but need more information.

LEV :

That is possible - but with different retirement plan - not with Roth IRA,

LEV :

However - you may have different retirement plan with either C-corp or S-corp - no difference.

Customer:

I guess I need to find out where they got their information from. I'.m having a lot of trouble trying to find answers about corporations. Met with 4 different accountants and received 4 different answers on questions.

LEV :

For instance - you may have 401k plan and have larger contributions - see here for limits - http://taxes.about.com/od/retirementtaxes/qt/401k-contribution-limits.htm

Customer:

Thanks

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