Reporting i401k contributions on 1120S

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MP123
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Reporting i401k contributions on 1120S

Post by MP123 » Mon Jan 29, 2018 3:03 pm

My understanding is that the employER contribution amount (up to 25% of compensation) for a Solo 401K is deducted on line 17 of 1120S as "Pension, profit sharing" the same way it would be for a SEP IRA contribution.

But what about the employEE deferred salary portion? It seems to me that it should be included in line 7 Compensation of Officers but the instructions are not clear on that point and say not to include "elective contributions to a section 401k cash or deferred arrangement" on line 7.

So the choices are:

1) Put the employee deferral portion on line 7. Line 7 would then be the Box 1 number from the W2 plus the Box 12 code D number?

Or

2) Should the deferred salary contributed to the i401k be added to line 17 along with the employER contribution to the i401k?

This is for a owner/spouse S Corp, both >2% shareholders and officers.

Thanks for any help!

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Mon Jan 29, 2018 4:46 pm

Neither. Assuming that this is a traditional deferral and not a Roth deferral. Line 7 instructions are very clear.

It is not included in Line 7, because it was a salary reduction and not paid as compensation. It is not included in Line 17, because it was not an employer contribution.

This is properly handled on your W-2. Box 1 Wages reflect the fact Line 7 did not include the employee deferral. Boxes 3 Medicare Wages and 5 Social Security Wages do include the deferral, because it is subject to FICA. Finally, the deferral will be reported in Box 12 Code D. This is entirely consistent with how common law employees are reported.

If you had any health insurance premiums paid or reimbursed by the S-Corp or HSA contributions paid by the S-Corp. You include those in the compensation reported on Form 1120s Line 7 and your W-2 Box 1 Wages, but not Boxes 3 and 5, because they are not subject to FICA. Then the health insurance premiums are reported on your Form 1040 Line 29 Self-employed health insurance deduction and HSA contributions on Line 25 Health savings account deduction. They are not reported on your W-2 Box 12 rather Box 14, because they were not deducted from compensation like common law employees.

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Re: Reporting i401k contributions on 1120S

Post by MP123 » Mon Jan 29, 2018 5:07 pm

Spirit Rider wrote:
Mon Jan 29, 2018 4:46 pm
Neither. Assuming that this is a traditional deferral and not a Roth deferral. Line 7 instructions are very clear.

It is not included in Line 7, because it was a salary reduction and not paid as compensation. It is not included in Line 17, because it was not an employer contribution.

This is properly handled on your W-2. Box 1 Wages reflect the fact Line 7 did not include the employee deferral. Boxes 3 Medicare Wages and 5 Social Security Wages do include the deferral, because it is subject to FICA. Finally, the deferral will be reported in Box 12 Code D.

This is entirely consistent with how common law employees are reported.
Are you saying that deferred salary contributed to a i401k is NOT an expense of the S Corp? That seems to be at odds with what I've read elsewhere.

That would end up increasing the K1 amount by the amount of the deferral, right?

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Mon Jan 29, 2018 5:18 pm

MP123 wrote:
Mon Jan 29, 2018 5:07 pm
Spirit Rider wrote:
Mon Jan 29, 2018 4:46 pm
Neither. Assuming that this is a traditional deferral and not a Roth deferral. Line 7 instructions are very clear.

It is not included in Line 7, because it was a salary reduction and not paid as compensation. It is not included in Line 17, because it was not an employer contribution.

This is properly handled on your W-2. Box 1 Wages reflect the fact Line 7 did not include the employee deferral. Boxes 3 Medicare Wages and 5 Social Security Wages do include the deferral, because it is subject to FICA. Finally, the deferral will be reported in Box 12 Code D.

This is entirely consistent with how common law employees are reported.
Are you saying that deferred salary contributed to a i401k is NOT an expense of the S Corp? That seems to be at odds with what I've read elsewhere.

That would end up increasing the K1 amount by the amount of the deferral, right?
You are right of course. I missed something.

It would appear it does go on Line 17. I was thinking in terms of only employer matches and non-elective employer contributions for Line 17. However, remembering now that employee deferrals are actually salary reductions with the employer making the contribution on behalf of the employee.

"Enter the deductible contributions not claimed elsewhere on the return made by the corporation for its employees under a qualified pension, profit-sharing, annuity, or simplified employee pension (SEP) or SIMPLE IRA plan, or any other deferred compensation plan."
Last edited by Spirit Rider on Mon Jan 29, 2018 5:28 pm, edited 2 times in total.

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Re: Reporting i401k contributions on 1120S

Post by theplayer11 » Mon Jan 29, 2018 5:24 pm

I believe wages including salary deferrals would go on line 8 of your 1120s.
Not an expert

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Re: Reporting i401k contributions on 1120S

Post by MP123 » Mon Jan 29, 2018 5:27 pm

Spirit Rider wrote:
Mon Jan 29, 2018 5:18 pm
MP123 wrote:
Mon Jan 29, 2018 5:07 pm
Spirit Rider wrote:
Mon Jan 29, 2018 4:46 pm
Neither. Assuming that this is a traditional deferral and not a Roth deferral. Line 7 instructions are very clear.

It is not included in Line 7, because it was a salary reduction and not paid as compensation. It is not included in Line 17, because it was not an employer contribution.

This is properly handled on your W-2. Box 1 Wages reflect the fact Line 7 did not include the employee deferral. Boxes 3 Medicare Wages and 5 Social Security Wages do include the deferral, because it is subject to FICA. Finally, the deferral will be reported in Box 12 Code D.

This is entirely consistent with how common law employees are reported.
Are you saying that deferred salary contributed to a i401k is NOT an expense of the S Corp? That seems to be at odds with what I've read elsewhere.

That would end up increasing the K1 amount by the amount of the deferral, right?
You are right of course. I missed something.
Whew! I was getting worried there...

It seems like my total salary including the portion that was deferred should end up on line 7. And then the employer contribution part on line 17. It's just that line in the instructions doesn't make sense unless they mean to not include the employer contribution on line 7.

Thanks as always for your help Spirit Rider!

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Re: Reporting i401k contributions on 1120S

Post by MP123 » Mon Jan 29, 2018 5:29 pm

theplayer11 wrote:
Mon Jan 29, 2018 5:24 pm
I believe wages including salary deferrals would go on line 8 of your 1120s.
Not an expert
I think it should be line 7 as an officer but line 8 for regular employees. In both cases including the deferred salary unless I'm mistaken.

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Mon Jan 29, 2018 5:30 pm

Look at my edited response where I added details. I believe deferrals should go on Line 17 for everybody.

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Re: Reporting i401k contributions on 1120S

Post by MP123 » Mon Jan 29, 2018 5:41 pm

Spirit Rider wrote:
Mon Jan 29, 2018 5:30 pm
Look at my edited response where I added details. I believe deferrals should go on Line 17 for everybody.
It just seems like putting it there would show way over the 25% of salary that's allowed for the employer part since it would also include the employee deferral. And that deferral wouldn't be shown as eligible salary above on line 7.

I guess it all falls to the same bottom line though.

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Re: Reporting i401k contributions on 1120S

Post by theplayer11 » Mon Jan 29, 2018 5:43 pm

Spirit Rider wrote:
Mon Jan 29, 2018 5:30 pm
Look at my edited response where I added details. I believe deferrals should go on Line 17 for everybody.
hmm, found this on HR Block forum answer by a moderator:

"Hi , I have S-corp in which I am the 100% Shareholder and I am the only Employee. My filing status is Single. I have contributed to Solo-401K Plan 31000 for 2015 in which 13000 is Employer Contribution and 18000 is Employee Contribution".

Now while Filing the returns, Where should I report these Solo 401K contributions?

Answer:

"Next, the deductions for the employer contributions and your wages (which include the deferrals) are reported on the tax return for the business, in your case Form 1120S (S-Corporation Tax Return).

Line 17 on Form 1120S is for the employer contributions $13,000.
Line 8 is for salaries & wages which will already include the elective deferrals of $18,000 that also should be shown on your Form W-2."

so. he's saying line 8...

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Mon Jan 29, 2018 5:56 pm

MP123 wrote:
Mon Jan 29, 2018 5:41 pm
Spirit Rider wrote:
Mon Jan 29, 2018 5:30 pm
Look at my edited response where I added details. I believe deferrals should go on Line 17 for everybody.
It just seems like putting it there would show way over the 25% of salary that's allowed for the employer part since it would also include the employee deferral. And that deferral wouldn't be shown as eligible salary above on line 7.

I guess it all falls to the same bottom line though.
Refer to my explanation and the quote from Line 17 instructions.

Employee deferrals are salary reductions. Deferrals are actually contributed by the employer from the salary reductions.

The The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001 removed the restriction that employee deferrals had to come out of the 25%, so there would be no problem with Line 17 including deferrals being > 25% of compensation.

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Re: Reporting i401k contributions on 1120S

Post by MP123 » Mon Jan 29, 2018 8:39 pm

theplayer11 wrote:
Mon Jan 29, 2018 5:43 pm

Line 17 on Form 1120S is for the employer contributions $13,000.
Line 8 is for salaries & wages which will already include the elective deferrals of $18,000 that also should be shown on your Form W-2."

so. he's saying line 8...
Thanks for that. Checking around online including the IRS hasn't really yielded any definitive answer which seems odd considering how many SCorps must have 401Ks.

Understating total compensation by including the deferred salary on line 17 and not on line 7/8 seems like it might have some drawbacks but maybe not. Line 17 is clearly where the employer contribution goes though.

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Re: Reporting i401k contributions on 1120S

Post by vtjon » Mon Jan 29, 2018 9:09 pm

Here is how my CPA prepared 2016 1120S was prepared. I am the sole employee/officer and have a solo 401K. I deferred the full amount 18K and had profit sharing of $10K on $40K salary.

Line 7 - $40,000 (my total salary)
Line 17 - $10,000 (my profit sharing)

I assume that Line 7 is to ensure officers are taking a reasonable salary so I think you should include any amounts that the company paid FICA on. I cannot see how the amount that I deferred as an employee should ever "leak" to the 1120S as it does not change the corp's expenses.

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Re: Reporting i401k contributions on 1120S

Post by ERISA Stone » Mon Jan 29, 2018 9:32 pm

Deferrals should be included under compensation on line 7 or 8 of the Form 1120. Line 17 is reserved for employER contributions. I understand that technically a salary deferral is an employER contribution made on behalf of the employEE but I can't recall seeing an accountant take this to mean deferrals should be reported under line 17.

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Mon Jan 29, 2018 11:30 pm

ERISA Stone wrote:
Mon Jan 29, 2018 9:32 pm
Deferrals should be included under compensation on line 7 or 8 of the Form 1120. Line 17 is reserved for employER contributions. I understand that technically a salary deferral is an employER contribution made on behalf of the employEE but I can't recall seeing an accountant take this to mean deferrals should be reported under line 17.
I respectively suggest that is 100% contrary to the Form 1120s Instructions which are very clear:

Line 7. Compensation of Officers and Line 8. Salaries and Wages
"Don't include salaries and wages reported elsewhere on the return, such as amounts included in cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."

Line 17. Pension, Profit-Sharing, etc., Plans
"Enter the deductible contributions not claimed elsewhere on the return made by the corporation for its employees under a qualified pension, profit-sharing, annuity, or simplified employee pension (SEP) or SIMPLE IRA plan, or any other deferred compensation plan."

Not to mention that Section 404 clearly states that deferrals are a deduction of the employer.

26 U.S. Code § 404 - Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan
(a) General rule If contributions are paid by an employer to or under a stock bonus, pension, profit-sharing, or annuity plan, or if compensation is paid or accrued on account of any employee under a plan deferring the receipt of such compensation, such contributions or compensation shall not be deductible under this chapter; but, if they would otherwise be deductible, they shall be deductible under this section, subject, however, to the following limitations as to the amounts deductible in any year:

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Re: Reporting i401k contributions on 1120S

Post by ERISA Stone » Tue Jan 30, 2018 1:34 am

Spirit Rider wrote:
Mon Jan 29, 2018 11:30 pm
ERISA Stone wrote:
Mon Jan 29, 2018 9:32 pm
Deferrals should be included under compensation on line 7 or 8 of the Form 1120. Line 17 is reserved for employER contributions. I understand that technically a salary deferral is an employER contribution made on behalf of the employEE but I can't recall seeing an accountant take this to mean deferrals should be reported under line 17.
I respectively suggest that is 100% contrary to the Form 1120s Instructions which are very clear:

Line 7. Compensation of Officers and Line 8. Salaries and Wages
"Don't include salaries and wages reported elsewhere on the return, such as amounts included in cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."

Line 17. Pension, Profit-Sharing, etc., Plans
"Enter the deductible contributions not claimed elsewhere on the return made by the corporation for its employees under a qualified pension, profit-sharing, annuity, or simplified employee pension (SEP) or SIMPLE IRA plan, or any other deferred compensation plan."

Not to mention that Section 404 clearly states that deferrals are a deduction of the employer.

26 U.S. Code § 404 - Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan
(a) General rule If contributions are paid by an employer to or under a stock bonus, pension, profit-sharing, or annuity plan, or if compensation is paid or accrued on account of any employee under a plan deferring the receipt of such compensation, such contributions or compensation shall not be deductible under this chapter; but, if they would otherwise be deductible, they shall be deductible under this section, subject, however, to the following limitations as to the amounts deductible in any year:
Your quote says "elective contributions to a section 401(k) cash or deferred arrangement." I don't think that's talking about a traditional EE 401k contribution. Regs generally refer to those as an "employee deferral." An elective contribution would be something like a QNEC or QMAC to assist with nondiscrimination testing.

That would make the line 17 statement moot as the employee deferral would already be included under 7 or 8.

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Tue Jan 30, 2018 1:52 am

Your argument makes no sense, because the part I didn't bold says; "or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."

So you are going to tell me that SARSEP and SIMPLE IRA employee deferrals do not get reported on lines 7&8, but 401k deferrals do?

Not to mention that including deferrals would make lines 7&8 incongruent with the W-2 Box 1 amounts.

Whereas not including them in lines 7&8, but including them in line 17 is consistent with W-2 box 1, lines 7&8 instructions and line 17 instructions.

You are taking the exception in each case. I say Occam's Razor applies.

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Re: Reporting i401k contributions on 1120S

Post by ERISA Stone » Tue Jan 30, 2018 2:15 am

Spirit Rider wrote:
Tue Jan 30, 2018 1:52 am
Your argument makes no sense, because the part I didn't bold says; "or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."

So you are going to tell me that SARSEP and SIMPLE IRA employee deferrals do not get reported on lines 7&8, but 401k deferrals do?

Not to mention that including deferrals would make lines 7&8 incongruent with the W-2 Box 1 amounts.

Whereas not including them in lines 7&8, but including them in line 17 is consistent with W-2 box 1, lines 7&8 instructions and line 17 instructions.

You are taking the exception in each case. I say Occam's Razor applies.
I'm not sure what you want me to say here. I don't want to be disrespectful but I don't think you are interpreting the words correctly. My "argument" makes complete sense to me. If you want to apply Occam's Razor, have at it, but we are on the opposite sides of what exactly the simplest explanation is here. I don't think it's talking about salary deferrals. This is consistent with any 1120 I can recall, and again, IMO there is a difference to say "contribution" vs. "deferral." That includes a SEP and/or a SIMPLE. Your quote never mentions the word "deferral." It says "elective contribution" and "amounts contributed."

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Re: Reporting i401k contributions on 1120S

Post by theplayer11 » Tue Jan 30, 2018 8:43 am

^But the instructions for line 17 does state "or any other deferred compensation plan."

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Re: Reporting i401k contributions on 1120S

Post by ERISA Stone » Tue Jan 30, 2018 10:50 am

theplayer11 wrote:
Tue Jan 30, 2018 8:43 am
^But the instructions for line 17 does state "or any other deferred compensation plan."
It does say "deferred" but your comment ignores the first half of that sentence.

I'm finished with this conversation because I feel comfortable in my stance and I don't think I'm going to change anyone's mind who is already set in.

FYI - I spoke with my accountant about it this morning, and he mentioned the same distinction between "deferrals" and "contributions" that I referred to and I didn't even bring it up. I simply asked him why deferrals weren't reported in line 17 based on the excerpts referenced above.

He also said it likely wouldn't matter either way because as long as one is consistent. He thinks there is a reasonable basis for the interpretation that deferrals should be reported under line 17 as discussed above. Last, he said it's never been questioned in an audit.

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Re: Reporting i401k contributions on 1120S

Post by theplayer11 » Tue Jan 30, 2018 11:41 am

Your last sentence is all that really matters. I would obviously prefer to fill out the form in a matter that doesn't raise any red flags with the IRS. The bottom line is that whether the salary deferrals are shown on line 7 or 17, it doesn't effect the bottom line business income figure. Hopefully that's all the IRS is concerned about.....but they do need to make it more clear. You would think with the millions of s-corp filings, it would be clear by now which line to use. I researched last night and the opinions were mixed, just like on this thread.

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Re: Reporting i401k contributions on 1120S

Post by ERISA Stone » Tue Jan 30, 2018 11:54 am

theplayer11 wrote:
Tue Jan 30, 2018 11:41 am

Your last sentence is all that really matters.
I agree.

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Re: Reporting i401k contributions on 1120S

Post by MP123 » Tue Jan 30, 2018 12:36 pm

theplayer11 wrote:
Tue Jan 30, 2018 11:41 am
Your last sentence is all that really matters. I would obviously prefer to fill out the form in a matter that doesn't raise any red flags with the IRS. The bottom line is that whether the salary deferrals are shown on line 7 or 17, it doesn't effect the bottom line business income figure. Hopefully that's all the IRS is concerned about.....but they do need to make it more clear. You would think with the millions of s-corp filings, it would be clear by now which line to use. I researched last night and the opinions were mixed, just like on this thread.
It seems to me that one advantage of putting the deferrals on line 7 or 8 is that the total compensation amounts from the 1120S, 940, 941, and W2/W3 would all match. W2 box 1 (including Health insurance and HSA) + Box 12 code D would also be the same amount on 1120S line 7. I'm not sure how much cross checking of forms is done but having two very different figures for total wages on 1120S vs. W2 seems like it might be an invitation to more scrutiny.

The line 7 instructions are not at all clear. I suppose they could be read to mean that you shouldn't include the line 17 employer contribution on line 7 as well. "Don't include salary and wages reported elsewhere..." may be a general reminder that you can't double dip or take the same deduction twice?

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Tue Jan 30, 2018 1:06 pm

MP123 wrote:
Tue Jan 30, 2018 12:36 pm
It seems to me that one advantage of putting the deferrals on line 7 or 8 is that the total compensation amounts from the 1120S, 940, 941, and W2/W3 would all match. W2 box 1 (including Health insurance and HSA) + Box 12 code D would also be the same amount on 1120S line 7. I'm not sure how much cross checking of forms is done but having two very different figures for total wages on 1120S vs. W2 seems like it might be an invitation to more scrutiny.
If you include the deferrals in 1120s Line 7, W-2 Box 1 will be 1120s Line 7 reduced by any pre-tax deferrals.

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Tue Jan 30, 2018 1:21 pm

ERISA Stone wrote:
Tue Jan 30, 2018 2:15 am
I'm not sure what you want me to say here. I don't want to be disrespectful but I don't think you are interpreting the words correctly. My "argument" makes complete sense to me. If you want to apply Occam's Razor, have at it, but we are on the opposite sides of what exactly the simplest explanation is here. I don't think it's talking about salary deferrals. This is consistent with any 1120 I can recall, and again, IMO there is a difference to say "contribution" vs. "deferral." That includes a SEP and/or a SIMPLE. Your quote never mentions the word "deferral." It says "elective contribution" and "amounts contributed."
A salary reduction is a deferral. Employee deferral elections are "Salary Reduction Agreements." Salary reduction is the mechanism under which deferrals are accomplished.

Line 7. Compensation of Officers and Line 8. Salaries and Wages
"Don't include salaries and wages reported elsewhere on the return, such as amounts included in cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."

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Re: Reporting i401k contributions on 1120S

Post by ERISA Stone » Tue Jan 30, 2018 4:26 pm

Spirit Rider wrote:
Tue Jan 30, 2018 1:21 pm
ERISA Stone wrote:
Tue Jan 30, 2018 2:15 am
I'm not sure what you want me to say here. I don't want to be disrespectful but I don't think you are interpreting the words correctly. My "argument" makes complete sense to me. If you want to apply Occam's Razor, have at it, but we are on the opposite sides of what exactly the simplest explanation is here. I don't think it's talking about salary deferrals. This is consistent with any 1120 I can recall, and again, IMO there is a difference to say "contribution" vs. "deferral." That includes a SEP and/or a SIMPLE. Your quote never mentions the word "deferral." It says "elective contribution" and "amounts contributed."
A salary reduction is a deferral. Employee deferral elections are "Salary Reduction Agreements." Salary reduction is the mechanism under which deferrals are accomplished.

Line 7. Compensation of Officers and Line 8. Salaries and Wages
"Don't include salaries and wages reported elsewhere on the return, such as amounts included in cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."
I guess we see what we want to see......
amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan.

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Tue Jan 30, 2018 6:28 pm

ERISA Stone wrote:
Tue Jan 30, 2018 4:26 pm
I guess we see what we want to see......
amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan.
I guess so... because amounts contributed under a salary reduction agreement is synonymous with employee deferrals.

Fidelity Retirement Plan — 401(k) Salary Reduction Agreement
Use this form to indicate the amount you wish to have withheld from your compensation and contributed as a salary deferral contribution to your account in the Fidelity Retirement Plan, or to change or terminate your existing Salary Reduction Agreement.
Last edited by Spirit Rider on Tue Jan 30, 2018 6:56 pm, edited 1 time in total.

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Re: Reporting i401k contributions on 1120S

Post by MP123 » Tue Jan 30, 2018 6:46 pm

Spirit Rider wrote:
Tue Jan 30, 2018 6:28 pm
ERISA Stone wrote:
Tue Jan 30, 2018 4:26 pm
I guess we see what we want to see......
amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan.
I guess so... because amounts contributed under a salary reduction agreement is the very definition of employee deferrals.
To be fair though both the SARSEP and SIMPLE IRA allow employer contributions in addition to employee deferrals. So they may be trying to say that the employer contribution amount should go elsewhere (line 17).

The fact that they refer to them as "amounts contributed" and "elective contributions" rather than as "deferrals" would seem to support this view.

It just doesn't seem right that we should have to parse the language of the instructions this closely to get an answer to something that should be very straightforward.

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Re: Reporting i401k contributions on 1120S

Post by Spirit Rider » Tue Jan 30, 2018 8:50 pm

Line 7. Compensation of Officers and Line 8. Salaries and Wages
"Don't include salaries and wages reported elsewhere on the return, such as amounts included in cost of goods sold, elective contributions to a section 401(k) cash or deferred arrangement, or amounts contributed under a salary reduction SEP agreement or a SIMPLE IRA plan."Also,

I believe I have found strong evidence that the second independent clause in Line 7/8 instructions sentence above is saying don't include pre-tax elective deferrals and a smoking gun to not include 401k deferrals. IRS regulations for 402g uses strikingly similar terminology to define what constitutes employee deferrals. I have shortened 3/4/5 because they are not applicable to 1120s pre-tax deferrals. Note: You would include Roth deferrals in Line 7/8, because they are post-tax. Also of note, IRS regulation 1.401(k)-1 refers to elective deferrals as elective contributions 94 times and elective deferrals only 2 times

26 CFR 1.402(g)-1 - Limitation on exclusion for elective deferrals.
§ 1.402(g)-1 Limitation on exclusion for elective deferrals, (b) Elective deferrals. An individual's elective deferrals for a taxable year are the sum of the following:
  1. Any elective contribution under a qualified cash or deferred arrangement (as defined in section 401(k)) to the extent not includible in the individual's gross income for the taxable year on account of section 402(a)(8) (before applying the limits of section 402(g) or this section). Look familiar.
  2. Any employer contribution to a simplified employee pension (as defined in section 408(k)) to the extent not includible in the individual's gross income for the taxable year on account of section 402(h)(1)(B) (before applying the limits of section 402(g) or this section). I.e Salary Reduction Agreement
  3. 403(b)
  4. 501(c)(18)
  5. designated Roth
  6. Any elective employer contributions to a SIMPLE retirement account, on behalf of an employee pursuant to a qualified salary reduction arrangement as described in section 408(p)(2) (before applying the limits of section 402(g) or this section).
What they are saying is do not include employee deferrals as clearly defined in IRS regulation 1.402(g)-1(b) on Lines 7 &8.

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Re: Reporting i401k contributions on 1120S

Post by tfb » Tue Jan 30, 2018 9:17 pm

Just use tax software and let the software do it.
Harry Sit, taking a break from the forums.

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