abctax55
Level 15

"...his (my emphasisbusiness net income"  -   Your client doesn't *have* business net income. The Corp does. 

For an S-Corp, retirement plan contributions are based on compensation (aka W-2, aka subject to SE tax)  While the income/loss of the S-Corp does flow thru to the shareholder, it is not considered compensation and can't be used to compute a retirement plan contribution.

"*******Tax software is no substitute for a professional tax preparer*******
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