https://ttlc.intuit.com/community/retirement/discussion/you-and-the-other-person-are-not-partners-in-the-s-corp/01/548591#M51291 <P>You and the other person are not "partners" in the S corp but are instead shareholders in the S corp.&nbsp; As shareholders, you are both employees of the S corp.&nbsp; Neither of you is self-employed with respect to the S corp and neither of you can independently make contributions to a self-employed retirement plan based on income from the S corp.&nbsp; Any retirement plan contributions based on income from the S corp would have to be made to a retirement plan established by the S corp, with contributions up to the statutory maximums based on each individuals wages reported on the Form W-2 provided to the individual by the S corp.&nbsp; Any SEP contributions must be the same percentage of compensation for all (both) employees.&nbsp; Employer profit-sharing contributions to a 401(k) plan can be subject to anti-discrimination testing, depending on the type of plan.&nbsp; (Unless the other shareholder is your spouse, a 401(k) plan would not be a solo 401(k) plan.)&nbsp; Since you are employees with respect to the S corp, not self-employed, you do not report on your individual tax returns any deduction for retirement contributions to the retirement plan established under the S corp.&nbsp; The deduction is taken on the S corp's tax return.<BR /></P><P>Additionally, if the other shareholder has separate self-employment income, that shareholder's separate self-employment business and the S corp might be considered a controlled group for the establishment of any retirement plan, depending on the relative proportion of ownership shares involved.&nbsp; All businesses in a controlled group are considered to be a single employer for the purpose of establishing a retirement plan.<BR /></P><P>If the SEP plan is established with Form 5305-SEP, no plan other than another SEP plan can be maintained by the S corp in the same taxable year.&nbsp; Since most SEP plans are established using Form 5305-SEP, this generally means that the S corp cannot maintain a SEP plan and a 401(k) plan in the same year.</P><P>If the S corp establishes a 401(k) plan, the amount that each of you can contribute as elective deferrals or Roth contributions is independent of the other.<BR /></P> Wed, 05 Jun 2019 05:13:56 GMT dmertz 2019-06-05T05:13:56Z https://ttlc.intuit.com/community/retirement/discussion/i-have-an-s-corp-with-a-partner-he-has-a-sep-ira-but-i-want-a-solo-401-k-can-we-have-separate/01/548584#M51289 <P>Can the contribution amounts be different as well?&nbsp;</P> Wed, 05 Jun 2019 05:13:55 GMT https://ttlc.intuit.com/community/retirement/discussion/i-have-an-s-corp-with-a-partner-he-has-a-sep-ira-but-i-want-a-solo-401-k-can-we-have-separate/01/548584#M51289 doctorloanusa 2019-06-05T05:13:55Z https://ttlc.intuit.com/community/retirement/discussion/you-and-the-other-person-are-not-partners-in-the-s-corp/01/548591#M51291 <P>You and the other person are not "partners" in the S corp but are instead shareholders in the S corp.&nbsp; As shareholders, you are both employees of the S corp.&nbsp; Neither of you is self-employed with respect to the S corp and neither of you can independently make contributions to a self-employed retirement plan based on income from the S corp.&nbsp; Any retirement plan contributions based on income from the S corp would have to be made to a retirement plan established by the S corp, with contributions up to the statutory maximums based on each individuals wages reported on the Form W-2 provided to the individual by the S corp.&nbsp; Any SEP contributions must be the same percentage of compensation for all (both) employees.&nbsp; Employer profit-sharing contributions to a 401(k) plan can be subject to anti-discrimination testing, depending on the type of plan.&nbsp; (Unless the other shareholder is your spouse, a 401(k) plan would not be a solo 401(k) plan.)&nbsp; Since you are employees with respect to the S corp, not self-employed, you do not report on your individual tax returns any deduction for retirement contributions to the retirement plan established under the S corp.&nbsp; The deduction is taken on the S corp's tax return.<BR /></P><P>Additionally, if the other shareholder has separate self-employment income, that shareholder's separate self-employment business and the S corp might be considered a controlled group for the establishment of any retirement plan, depending on the relative proportion of ownership shares involved.&nbsp; All businesses in a controlled group are considered to be a single employer for the purpose of establishing a retirement plan.<BR /></P><P>If the SEP plan is established with Form 5305-SEP, no plan other than another SEP plan can be maintained by the S corp in the same taxable year.&nbsp; Since most SEP plans are established using Form 5305-SEP, this generally means that the S corp cannot maintain a SEP plan and a 401(k) plan in the same year.</P><P>If the S corp establishes a 401(k) plan, the amount that each of you can contribute as elective deferrals or Roth contributions is independent of the other.<BR /></P> Wed, 05 Jun 2019 05:13:56 GMT https://ttlc.intuit.com/community/retirement/discussion/you-and-the-other-person-are-not-partners-in-the-s-corp/01/548591#M51291 dmertz 2019-06-05T05:13:56Z https://ttlc.intuit.com/community/retirement/discussion/aren-t-2-shareholders-treated-as-partners-when-it-comes/01/548599#M51292 Aren’t 2% shareholders treated as partners when it comes to fringe benefits? IRC section 1372 Wed, 05 Jun 2019 05:13:58 GMT https://ttlc.intuit.com/community/retirement/discussion/aren-t-2-shareholders-treated-as-partners-when-it-comes/01/548599#M51292 chublillyanna 2019-06-05T05:13:58Z https://ttlc.intuit.com/community/retirement/discussion/perhaps-but-it-s-not-relevant-in-the-context-of-this-que/01/548604#M51293 Perhaps, but it's not relevant in the context of this question.&nbsp;&nbsp;The intent was to differentiate the methods required for making and reporting retirement contributions for shareholders of an S corp (deducted on the S corp's tax return and elective deferrals or Roth contributions reported in box 12 of the shareholder's W-2) from those required for partners in a partnership (reported and deducted on the partner's personal tax return). Wed, 05 Jun 2019 05:14:00 GMT https://ttlc.intuit.com/community/retirement/discussion/perhaps-but-it-s-not-relevant-in-the-context-of-this-que/01/548604#M51293 dmertz 2019-06-05T05:14:00Z