ac Posted September 7, 2023 Posted September 7, 2023 A small law firm operates as an LLC and is taxed as a sole proprietor. The law firm sponsors a 401(k) profit sharing plan. The sole member of the LLC makes 401(k) deferrals. Which bank account should the LLC member use to pay his 401(k) deferrals into the Plan, personal account or the LLC's bank account? Does it matter?
Popular Post Lou S. Posted September 7, 2023 Popular Post Posted September 7, 2023 It's going to be deducted on the 1040 so I'm not sure it matters which account it comes from as long as they keep good records and the accountant can follow it for deductions and you're able to support it to the IRS in the event of an audit. If it was me, I'd do it from the LLC bank account. duckthing, CuseFan, Luke Bailey and 3 others 6
Bill Presson Posted September 8, 2023 Posted September 8, 2023 7 hours ago, Lou S. said: It's going to be deducted on the 1040 so I'm not sure it matters which account it comes from as long as they keep good records and the accountant can follow it for deductions and you're able to support it to the IRS in the event of an audit. If it was me, I'd do it from the LLC bank account. Agreed Luke Bailey and RatherBeGolfing 2 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
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