Discussion:S Corp SEP question
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Discussion Forum Index --> Tax Questions --> S Corp SEP question
| 13 January 2007 | |
| Hi -
I own a small S-Corp. Last year (2006) I took wages of $8k, and $0k via distributions. I opened a solo 401(k) on 12/29/06 with a $8k employee contribution, and $1.6k in employer contribution (20% of $8k). I understand that the employer contribution of $1.6k will reduce my K-1 income. How do I report my contribution of $8k. Do I prepare a W-2 with $0 in box 1 (Wages, tips, other compn), check the retirement plan in box 13, and report $8k in box 14? Thanks! | |
Death&Taxes (talk|edits) said: | 13 January 2007 |
| Box 12 I think, and coded D, but you have the idea. Of course, Fica & Medicare wages are 8K | |
| January 13, 2007 | |
| Yes, 0 in box 1. Yes, check the ret plan in box 13. Do as D&T said for the other boxes. Box 14 should be blank. | |
| 14 January 2007 | |
| Obviously, your wages would need to be greater than $8,000 in order to withhold the employee portion of FICA taxes. You need to also enter the $8,000 in box 12 with "D" (stands for "deferral"). | |
| January 14, 2007 | |
| Actually the "D" stands for Elective deferral to a section 401(k) cash or deferred arrangement (plan). Codes "E" through "H" are also deferrals under different code sections. But, Umk is correct about the wages needing to be greater than $8k. The $8k of wages will have to be grossed up to include your share of the FICA withholding taxes, so box 1 will show that amount, which is a correction of what I said above for box 1. | |
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