PaddyMac wrote:It technically doesn't make a difference, and being a sole proprietor you can make contributions on either side up until your tax filing date (April or Oct with extension). But I would put it in the employER side as there is no math to prove (based on 20% of SE income etc.) in case you ever get audited.
PaddyMac, I believe you have this exactly backwards.
The employEE contribution is a salary deferral contribution and is limited to the lesser of $17,000 (in 2012) or net adjusted business profit (gross profit minus expenses mins half of self employment tax)
The employER contribution is a profit sharing contribution and is limited to 20% of net adjusted business profits
In this case, the simpler one to claim (and what I would recommend) is the employEE contribution.
Please correct me if I am mistaken.