I'm thinking prohibited in the sense that you are using aftertax assets to fund a pretax contribution
Posted by
decline (aka Decline)
Mar 13 '15, 07:18
|
meaning deferrals. You can't do that.
However, I suppose if you were going to take out the HELOC, lend the company the money, and then use that money to fund an employer contribution, I think that would work. Although I'm not sure the ramifications for corporate tax purposes in doing that.
I suppose you could also use those assets to fund deferrals, but you would need to first pay that money to yourself as part of your salary and then you would have to pay the federal payroll tax on those assets - even if you deferred the entire amount.
Also, the loan would need to carry interest - even if it is a minimal amount.
|