Maybe.My CPA said it’s ok because he has until the end of January to revise my w2 so he will just update the w2 to reflect that I contributed 23,000 as an employee and that next week I should contribute $35,500 to my solo 401k on Schwab (representing 12.5k employer and 23k employee). This sounds great to me but I want to confirm it’s allowed.
1) You need a signed deferral election agrement dated prior to 12/31. This is an agrement between you and the S-Corp to defer a portion of your salary. It's just for your records.
2) Even if you give yourself a $23k bonus prior to 12/31, and defer it all, you still need to pay FICA on it. And FICA deposits are due by the 15th of the following month, which is already past. So it's more than just changing the W2 and the 941 (which may or may not have been filed already).
To be clear, the $23k employEE deferral needs to be run through payroll (so that FICA is paid), you can't just deposit it in the 401k. And it may be too late for that.
Statistics: Posted by MP123 — Sat Jan 18, 2025 5:37 pm