Viewing a single comment thread. View all comments

kaartman1 t1_iy6xljm wrote

I have S corp taxed as LLC. Your employer portion of 401k contribution can not exceed 25% of paycheck and you can contribute your portion of 401k only when it is line item in your pay check.

Employer portion can be deposited in lump sum before year.

You portion can also be deposited in lump sum but it has to recorded in your paycheck.

1

[deleted] OP t1_iy6y3f7 wrote

[deleted]

1

kaartman1 t1_iy6ylxc wrote

Do you use any 3rd party service or app to run pay check? May be there is a loophole ( void it and rerun citing some mistake… forgot to add 401k contributions).

1

[deleted] OP t1_iy6z5nf wrote

[deleted]

1

kaartman1 t1_iy6znxf wrote

I am sure there will be a way to amend it. Call them and explain. I am sure mistakes like this happen all the time. Worse case …run remaining pay checks for huge amount and contribute all of it towards your portion of 401k.

1

[deleted] OP t1_iy706dl wrote

[deleted]

1

mnico213 t1_iy8klqu wrote

For whatever it’s worth, with an S Corp your salary needs to be reasonable with regards to the services you are providing to the corporation. The IRS does not allow you to just avoid payroll taxes by being an S Corp.

1

MikeWPhilly t1_iy9nlte wrote

This is even more critical with the increased scrutiny on taxes soon. I’m expecting S Corp to be a fun target for audits.

1