Please check out this good question from our Daily Live Zoom call. Subscribe to our YouTube Channel to get notifications of our Daily FAQs.
Solo 401k FAQ – Do I report both Employee and Employer Solo 401k contributions on my W-2?
QUESTION:
I make contributions to my solo 401k sponsored by my self-employed business taxed as an S-corporation. What is the W-2 box and what W-2 label to report my Solo 401k contributions?
RESPONSE:
Great question as one of the top reasons that clients set up our Solo 401k plan is the ability to make Solo 401k contributions.
For a self-employed business taxed as an S-corporation, the ability to make Solo 401k contributions is based on w-2 wages received from the S-corporation.
Per the w-2 instructions:
- Employee Solo 401k contributions (elective deferrals) made as a pre-tax contribution are not included in box 1 of the w-2 but instead are reported in Box 12 (Code D).
- Employee Solo 401k contributions (elective deferrals) made as a Roth contribution do not reduce the amount reported in box 1 (since they are made on a post-tax basis) and are also reported in Box 12 (Code AA).
- Voluntary after-tax Solo 401k contributions may be reported in Box 14 of the W-2 (Optional).
- Employer Solo 401k contributions are not reported on the w-2.
For more please see our Solo 401k contributions guides page where we have links to our deep-dive webinars including videos and Powerpoint presentations: Solo 401k Contribution Guides-Deep Dive
