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Vivek13
Level 2

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

I have an S-Corp where i am the only owner and employee. Say as W-2 employee i I earned a taxable wages of $65,000. As an employee i contributed $19,500 to a 401k. As an S-Corp owner/employer I contributed $16,250(25% of $65,000) to SEP IRA.

 

Question

what line item in 1120S do i show employee 401k and employer SEP IRA contribution? Also on line item 7 i.e compensation of officer do i show a wage of $65,000 or $84500 ($65000 + $19500 since the 401k is employee contribution) 

7 Replies
martinmarks1919
Level 8

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

$84500 is what you paid yourself so show that and that employee contribution doesn't show on the 1120S....only the employer contribution if a qualified plan.

 

 

Vivek13
Level 2

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

Great Thanks.  I think i get it.  

So in 1120S Line no 7 i.e Compensation of Officers i will be entering $84500 ($65000 + $19500).  I was  getting confused because  in W2 my taxable income is $65,000.

 

Then looks like the employer SEP IRA contribution i.e  $16250 will go under line no 17 i.e Pension, profit-sharing, etc., plans  .

 

Can you please confirm my observations?  

 

Thanks a lot for your help, also if you are a  accounting specialist from turbox tax and can validate my return for the extra $60 i would love buy in.

 

 

 

 

martinmarks1919
Level 8

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

Can't validate....you got it right now anyway.

Critter-3
Level 15

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

On the 1120S you use box five of the W-2 for the officers compensation not box one.  That's where you were getting confused.

 

 

 

 

 

 

Vivek13
Level 2

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

Thanks Critter you are correct i believe.  So where will i show employer contribution of $16500 on the W2?

Critter-3
Level 15

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

I think you really need local professional assistance to be educated properly ... the employee's contribution from their wages goes in box 12.  The employer's  portion does NOT go on a W-2. 

Vivek13
Level 2

on what line item of 1120s do i show employee 401k and employer SEP IRA contribution

Yep, I agree.  I have reached out to one.  They are taking time.  Thanks for your help as well.

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