My company is an LLC taxed as an S Corp.  Are my cash balance plan contributions subject to FICA?  Either at time of contribution or upon distribution?

For example, if W-2 wages are $100,000 for the year and the client makes a cash balance plan contribution of $75,000, then do they owe/pay FICA this year?  And if the answer is no, then how to get it back, since it’s been withheld/collected during the year through payroll?

Answer:

Cash balance plans are not subject to FICA at the time of contribution or distribution. But your wage is always subject to FICA.

So in the example, the company paid you $100k. That is always subject to FICA. When you are paid a wage you will always have employment taxes taken out.

So you would pay FICA on the $100k and NOT on the $75k contribution to the cash balance plan. If you work for a living you always have FICA.