S Corp Owner Contributions

[coleboy]

The owner of a S-corp wants to make a $5000 contribution to his 401k plan on a pre-tax without it going through payroll. Is this possible? If so, how?

[jpod]

"Going through payroll" really doesn't mean anything, technically, in terms of Internal Revenue Code compliance, but I think we all know what you mean. No, i don't see how it's possible.

[Bird]

Well, if it is an employer profit sharing contribution, that is a direct transaction from the employer to the plan and doesn't have to go through payroll. If it is an employee (401(k)) contribution, it does have to go through payroll.

[QDROphile]

Not enough information has been given to respond correctly. An elective deferral must be made on the basis of a salary reduction agreement and must go "through payroll." Elective deferrals and after-tax contributions are the only types of "personal" contribution allowed. The owner may not distinguish well between personal and company contributions. The plan can be designed to allow the company to make make a contribution.