S-Corp Employer 401(k) Contribution

jctu2 · ‎February 17, 2020

I am an owner and only employee in my s-crop. As an employer, I contribute 25% of my salary compensation (W2) into my solo 401k account. Should this 401K contribution be input in 1120S Line17 (Pension, Profit-Sharing, etc., Plans)? Or another possible place is in 1040 as I "pass-through" from K1, I input this employer's 401K contribution in 1040 Schedule 1 line 15 (Self-Employed SEP, SIMPLE, and
Qualified Plans)? Thank you

dmertz · ‎February 17, 2020

The deduction is taken on your S corp's tax return, not on your personal tax return. It is not a self-employed retirement contribution. Except for the purpose of a self-employed health insurance deduction, you are not self-employed.

jctu2 · ‎February 17, 2020

Thank you for your reply. Put this Employer 401(k) Contribution in 1120S will lower the QBI. I think it makes sense as this is a tax-deferred contribution.

dmertz · ‎February 17, 2020

Correct.

S-Corp Employer 401(k) Contribution

Retirement tax questions

Retirement tax questions

Retirement tax questions