According to the IRS, contributions to a retirement plan can only be made from compensation to an S-Corp shareholder. You also can’t establish a self-employed retirement plan for yourself solely based on being an S corporation shareholder.
You can make salary deferral contributions to the 401(k) plan based on your Form W-2 compensation and your employer can make matching or nonelective contributions to the plan based on your Form W-2 compensation as an employee.
Read more here: IRS: Retirement plan FAQs regarding contributions - S corporation
[edited to remove/revise previous answer 03/19/2024 | 10:26 am PDT]
@dev1105
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
