allesandre2014ParticipantStatus: Small Business OwnerPosts: 9Joined: 11/30/2018
Thank you so much for taking the time to give me all this valuable information . I have quite a bit of information to read and do some research as well as take notes on all that has been mentioned .
I am so glad I came to this forum to ask this question.
To answer jacoavlu – Indeed the Scorp does pay the health insurance and HSA contribution .
My thoughts are bringing up more questions :
Would maybe running the last payroll with a higher Salary be an option or would that not be suggested at all for year end payroll run ?
This would then also allow us to pay more into the Solo 401 K since we would raise the salary.
Do we contribute to the Solo 401K with the last payroll the deferral portion and also the companies profit sharing portion .
My question essentially is does the deferral need to happen via payroll or can we as a private person write a check out to the SOLO 401K .
Does the employer portion/ profit share have to be contributed via payroll run or check from S-corp ?
Does anyone have any suggestions where to open the 401K I only looked into Etrade at this point and Capital One ?
Would I be able to open the 401K by the end of the year or is this a process that takes a long time to open and fund?
I am so thankful that all of you took the time to help us out and answer the questions – this is very much appreciated especially since we are at the beginning of getting this sorted out and getting a better understanding on how to be prepared for the future.
We will be taking the points mentioned in this thread and interview other CPA’s and also read up on the items mentioned . Thank you again to everybody who took the time to answer .December 3, 2018 at 2:36 pm MST #171494jacoavluModeratorStatus: Physician, Small Business OwnerPosts: 1860Joined: 03/01/2018
S corp election also makes solo 401k more complex than a sole prop or QJV
Yes increasing salary is an option. This would increase the allowable contribution to a solo 401k.
Salary deferral to a solo 401k for an S corp has to come through payroll. Deferral has to come from funds not already received by the employee. So for 2018 your only opportunity for employEE elective deferral to a solo 401k is with any remaining payroll.
EmployER contributions to the solo 401k must come from the S corp. You have until the Corp tax filing deadline including extension to make this contribution.
In order to make contributions to a solo 401k for tax year 2018 the plan must be open by 12/31/18. You can open it with an effective date of 1/1/18. You do have time to open a plan but you better not wait long.
It goes without saying but you can’t make contributions for 2018 to both a SEP IRA and a solo 401k for the S corp.
The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVAallesandre2014ParticipantStatus: Small Business OwnerPosts: 9Joined: 11/30/2018
Since we didnt contribute to the SEP yet . We will open a Solo 401k and then work on searching a new CPA.
Thank you for to everyone who was so nice to contribute to the question .
It sure is appreciated .December 3, 2018 at 4:51 pm MST #171521