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Level 2

Question

W2-401k question

Forum|Forum|6 years ago
January 22, 2020
1 reply
7 views

I'm just wondering if i own S corp and paid $19,000.00 to 401k in 2019. Can I consider this payment is not from my salary. (i.e. employer contribution). in this situation the company is not subject to FICA tax. is that possible or i have to pay half of the contribution and the company match that. in this case i need to pay FICAon my half part contribution.

My other question if the company paid all the amount, does it need to show anywhere in the box 14 code D as 19,000.00 ?

Level 12

You do not need to consider the contribution from your S-Corp to a 401(k) plan as a deferral from your compensation.

For one participant 401k plans the company can contribute up to 25% of your compensation to the plan with a limit of $56,000 for 2019. The contribution is called a nonelective contribution.

More information about One Participant 401k Plans

You do not need to report the contribution on your W-2 in Box 14. Box 14 on the W-2 is for informational purposes.

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marquez7780Author

Level 2

Thank you very much for the info. So my yearly salary is 100k. (0.25*100k- 25,000) so i can consider the 19k is a nonelective contribution.?

Level 12

Yes, you can consider the $19,000 as a nonelective contribution.

Since your compensation is $100,000 the company can contribute $25,000 to your retirement plan for 2019.

Link with more information about One-Participant 401k Plans

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