QBI deductions - contributions to qualified retirement plan

Forum|Forum|3 months ago
March 23, 2026
1 reply
9 views

We are required to deduct from QBI by contributions to qualified retirement plan. Is this just for the shareholder? If so, is it only the company match portion of the 401K or the amount the shareholder contributed to the 401K or both. I believe it is just for the shareholder portion. I wouldn't think it would be the entire company match that I need to deduct. Does anyone know?

Lacerte Tax

sjrcpa

Level 15

K-1 Line 1 is already reduced by the Company contribution.

Shareholder/employee deferral is part of their W-2 wages.

What are you trying to reduce?

The more I know the more I don’t know.

T

taxlady2008Author

Level 4

Thank you for responding. According to Reg 1.99A-3(b)(1)(vi), you are supposed to reduce from QBI the deductible portion of SE tax, the self employed health insurance deduction, and the deduction for contributions to a qualified retirement plan. I am confused on how to deduct the 401K contribution. Do I just deduct the match for the 100% shareholder (S Corp) or his contribution and the companies match? Or do I deduct the company match for all employees. The instructions are so vague.

sjrcpa

Level 15

If you're preparing a 1040 with no SE income just use the 199A amounts from the 1120S K-1.

The more I know the more I don’t know.

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