Do individual 401(k) plan administration costs go on Line 14b or Line 17 of Schedule C?

I'm a sole proprietor, and I opened an individual 401(k) plan for myself in 2021. I paid a third party company to administer my 401(k). I imagine this counts as a business expense, but should it be classified as an "employee benefit" (line 14b) or a "professional service" (line 17)? Or something else? Or is it not a valid business expense in the first place?

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1 Best answer

Expert Alumni

Jan 31, 2022 5:17:34 AM

Yes, these administration costs are deductible when paid by your business and can be categorized as Professional services. They are reported on line 17 of Schedule C.

Expert Alumni

Jan 31, 2022 5:17:34 AM

Yes, these administration costs are deductible when paid by your business and can be categorized as Professional services. They are reported on line 17 of Schedule C.

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Do individual 401(k) plan administration costs go on Line 14b or Line 17 of Schedule C?