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 need to be from your business account, not your personal account. They must come from wage deductions.


Do I have to contribute to my QRP every year?

NO, you can contributed 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 the full $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