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smhyde
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How do I handle Roth 401k Profit Sharing Contributions made by S-Corp? Corp tax return has reduced income due to contribution, so how do I account for and pay tax on it?

 
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dmertz
Level 15

How do I handle Roth 401k Profit Sharing Contributions made by S-Corp? Corp tax return has reduced income due to contribution, so how do I account for and pay tax on it?

Profit sharing (employer) contributions are not permitted to be made to the designated Roth account in a 401(k).  They are permitted to be made only to the traditional account in the 401(k).  Only elective contributions made by the shareholder from compensation as employee are permitted to be made to the Roth account and are reported on the employee's W-2.

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