solo 401

[JT2307]

Sole shareholder of an s-corp opened a solo 401 for himself - I find out today that he contributed but did not reflect anything on his w2 which he already filed all year end payroll forms.
My question is can I treat the total he contributed as the "employer" portion and leave the w2 as is? Or will i have to correct all his payroll???

Yes he does his own payroll.

Thank you in advance.

[Snaggletooth]

One possible alternative would be to leave the W-2 alone and deduct "Self-Employed Retirement" as an "Adjustment" for the amount contributed.

[TaxGuyBill]

If the amount of the contribution was at or under the employer limit, sure, that seems to be fine.

[JT2307]

One possible alternative would be to leave the W-2 alone and deduct "Self-Employed Retirement" as an "Adjustment" for the amount contributed.

I would be able to do this with a solo 401?

[New York Enrolled Agent]

I would be able to do this with a solo 401?

Not sure what Snags is referring to but it doesn't sound too good.

The Solo K has two components - an employee elective deferral from wages and an employer profit sharing contribution. The elective deferral is just that - not a requirement. For an S-Corp the profit sharing portion can be 25% of wages. It is a deduction on the 1120-S. As TGB notes you're good to go assuming your numbers are in line.

[JT2307]

Amount is just under the amount for the employer so that is the way I am going! Thanks for the input.

[Snaggletooth]

Thanks NYEA - I shoot from the hip too often without research. Happy you were there to set things straight.