@VolvoGirl
Many thanks for your response.
You are right I did create some confusion.
Lets see if I can clarify:
S-corp receives management fees --> issues W2 to me --> From this 100% goes to solo 401K + 25% contributed by S-corp
Total taxes in this transaction --> Medicare taxes which might total (employer + employee) to around 3.8% max. This is significantly less than $47K of original income going into Sch-E.
I am aware of the filing requirement for the S-corp itself. That is just bunch of forms. Main issue is the actual income that flows through it.
