O tax basis at the start of the year. net profit $50. took a deduction but didn't pay the 401(k) amount thus took $75 in distributions,. sorry, you do have an excess distribution of $25. that $25 was supposed to be retained by the S-Corp to pay off the 401(k) liability. your balance sheet would show a $25 liability for the 401(k) and a deficit in retained earnings of $25. run to a tax pro the return is due in 4 days.
