S corp owner distribution too much?

[cbusa]

Is there a rule of thumb on how much an s corp owner can pass through or take as a distribution compared to w2 wages? Like a % of wages

[tagteam · Accepted solution]

There are no specific guidelines (i.e., no rule of thumb). 

There are factors that are considered in making the determination as to what constitutes a reasonable salary.

See https://www.irs.gov/pub/irs-news/fs-08-25.pdf

See also https://www.aicpa.org/resources/article/s-corporation-reasonable-compensation