Simple & 2% S/h

[Gretel]

I am confused and never had to deal with this. Please help.

After reading through TTB and IRS info I came to the conclusion that contributions to a SIMPLE plan must be included in box 1,3 & 5 of the W-2 of the shareholder and code S with the amount must show in box 12.

Then I searched on this board and found the opposite to be true, no reporting if non-discriminatory retirement plan.

My S-Corp has only 2 50/50 shareholders and no employees so they should qualify having a non-discriminatory retirement plan. Do I have to do any special reporting (or better advise them to do since they do their own W-2's? The elective deferral amount should have reduced taxes for box 1 all year long, right?

I am sure this is rather simple but it feels complex to me.

[veritas]

The reporting requirements

I am confused and never had to deal with this. Please help.

After reading through TTB and IRS info I came to the conclusion that contributions to a SIMPLE plan must be included in box 1,3 & 5 of the W-2 of the shareholder and code S with the amount must show in box 12.

Then I searched on this board and found the opposite to be true, no reporting if non-discriminatory retirement plan.

My S-Corp has only 2 50/50 shareholders and no employees so they should qualify having a non-discriminatory retirement plan. Do I have to do any special reporting (or better advise them to do since they do their own W-2's? The elective deferral amount should have reduced taxes for box 1 all year long, right?

I am sure this is rather simple but it feels complex to me.

are the same as any other employee.

[BHoffman]

From here:

http://www.irs.gov/retirement/article/0,,id=111403,00.html

"W-2 Reporting: SIMPLE IRA contributions are not included in the “Wages, tips, other compensation” box of Form W-2, Wage and Tax Statement, but check the "Retirement Plan" box in box 13. For more information, see the instructions for Forms W-2 and W-3. Salary reduction contributions must be included in the boxes for Social Security and Medicare wages.

SIMPLE IRA contributions are not subject to federal income tax withholding. However, salary reduction contributions are subject to social security, Medicare, and federal unemployment (FUTA) taxes. Matching and nonelective contributions are not subject to these taxes."