401(k) Deferral Deadline for S-corp

[retbenser]

I understand the deferral contribution deadline for C-corp is 12/31; for sole-proprietor and partners, deadline is due date of tax return.

When is the deadline for deferral "contribution" for S-corp?

[Belgarath]

Same as a C-corp.

[QDROphile]

Where do you get the later deferral deadline for self employed persons?

[retbenser]

Where do you get the later deferral deadline for self employed persons?

http://benefitslink.com/boards/index.php?s...amp;hl=deadline

[retbenser]

Same as a C-corp.

What if S-corp has K-1 but no W-2.

Can the owner make 401(K) deferral contribution from K-1 (before tax-return filing deadline)?

Thanks.

[QDROphile]

I disagree with the tax-return due date and none of the material in the posts cite any authority to the contrary. Elections must be made before an amount is currently available. The special rule for self employed individuals is in Treas. Reg. section 1.401(k)-1(a)(6). The deadline is the last day of the partnership taxable year for partners and the last day of the calendar year for sole proprietors.

[jpod]

QDRO: I assumed that the question was the dealine for a self-employed person to deposit the EDs, as opposed to when he/she must "elect" to defer. I think the deposit deadline is in fact the tax return deadline.

[rcline46]

Sub S k-1 is not ever available for plan compensation. -0- W-2 means -0- contribution.

[401king]

Sub S k-1 is not ever available for plan compensation. -0- W-2 means -0- contribution.

We've gone back and forth on this topic in-house and with clients. While I've read many conflicting answers, we've followed the assumption that "guaranteed payments" on a K-1 may be considered for 401k purposes, while other K-1 income is considered passive.

[Bird]

We've gone back and forth on this topic in-house and with clients. While I've read many conflicting answers, we've followed the assumption that "guaranteed payments" on a K-1 may be considered for 401k purposes, while other K-1 income is considered passive.

I don't claim expertise on tax filings but I believe (and a quick check of the forms seems to confirm) that there is no separate line for reporting guaranteed income on a K-1 that is filed with an 1120-S. A K-1 for a 1065 (partnership return) does have a separate line. Ultimately, if income is not subject to SS/Medicare taxes then it is not "earned income" and not eligible plan compensation. You can't have your cake and eat it too.