Not sure if this is the best subreddit to ask so feel free to direct me to a different sub if appropriate.
I worked as a public employee and I had a real bad workplace accident which forced me to retire and now I collect my disability pension benefits. To supplement my pension income, I started a consulting business under a Single Member LLC.
The rules of my pension are that if I make more than what my former position’s base salary, it’s deducted from my pension benefits. For example (not real figures), if the salary of my former job was $100k/yr and my current pension is $50k, I’m only allowed to make an additional $50k. If I make more than an additional $50k, then my pension benefits will be adjusted so that I’ll only make $100k. If I earn more than $100k/yr , then I’ll forfeit all pension benefits. This restriction expires on my 50th birthday which was the pension plan’s earliest retirement age.
I didn’t anticipate making this much money and I really don’t want to “work for free” so I’ll admit it’s a good problem to have.
Can I pay myself as a W-2 employee and file my company’s taxes as an S-Corp? If I file my LLC’s taxes as an S Corp, will the LLC still show on my personal income like it did when I filed as a sole proprietor?
That way I can control my personal income and just invest the rest of the companies profits until I turn 50 which is about 15 years away.
Thanks!
If you are gonna make 100k profit then you don’t have much of a disability in the “impaired ability to earn” meaning if the word.
Congrats on your success and getting off the public dole.
I actually protested the the disability retirement because I claimed I could still work but the city (my employer) forced it. The only requirement is that my new job can’t have similar duties to my old one. The whole situation absolutely blew my mind and honestly, I’d still go back if I was allowed.
Poor take. A public employee having a major workplace injury that forced them to start a new occupation.
They have earned their disability pension, of which they paid into while employed and UNINJURED on the job.
They should not be penalized for being forced to make a new living while being injured, on the job, while serving the public.
Disability programs exist to support people who cannot work. OP is clearly not disabled in that way.
I’m not saying they’re not entitled to it, but I’d not a completely unreasonable take on the situation.