Roth Individual 401(k) Contribution

Submitted by Brandon Blanchard on Thu, 2023-03-02 14:14

I have a client that owns her own S corp. For tax year 2022 she made a $27,000 contribution into a Roth Individual 401(k) plan. I understand there is no deduction, but does this contribution need to be noted anywhere on her 2022 S corp return or individual tax return?



Submitted by William Tuttle on Fri, 2023-03-03 04:19

  • An employee deferral to a 401k designated Roth account must be reported on the 2% shareholder-employee’s W-2 Box 12 Code AA.
  • It would only be reported on their personal tax return if they were eligible for the Saver’s Credit.
  • If a one-participant 401k plan 12/31 balance is > $250K. A Form 5500-EZ is required by 7/31 including a report of the Roth 401k contribution.
  • A Roth 401k employee deferral would not be reported on the S-Corp’s tax return. Only pre-tax employee deferrals and employer contributions are reported.

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