Can I use personal money to transfer into my plan? What money qualifies to put into the plan?
No, you cannot transfer personal money to contribute into the plan. Qualifying contributions consist of rollovers, elective deferrals, employer match contributions, employer profit sharing contributions, and qualified non-elective contributions. New deductible contributions to your plan should be from your business account unless you’re a sole proprietor. The most important question is do you have qualified income eligible for contribution.
Do I have to contribute to my eQRP every year?
No, you can contribute whenever you want with your elective deferral (your own contribution). You have a maximum that you can contribute, but no minimum requirement.
I have a Corporation and pay myself $30,000 annual salary.What is the maximum amount I can contribute to my plan?
Approximately $25,500 - this is a combination of the elective deferral of $18,500 plus $7,500 in profit sharing (25% x $30,000). If you're over 50 you would be able to contribute nearly all $30,000.
Do you need profits in order to make contributions to a Profit-Sharing Plan?
No. Of course having profit would probably make it easier to actually contribute something, however, contribution to a profit sharing plan is discretionary. There is no set amount of profits that you need to make to contribute to profit-sharing plans