1120-S contribution line 17

Forum|Forum|2 years ago
November 9, 2023
3 replies
39 views

I need your help to distinguish these two paragraph that I read on IRS regarding line 17 for 1120-S.

Line 17. Pension, Profit-Sharing, etc., Plans
1---Enter the deductible contributions not claimed elsewhere on the
return made by the corporation for its employees under a
qualified pension, profit-sharing, annuity, or simplified employee
pension (SEP) or SIMPLE IRA plan, or any other deferred
compensation plan.

2-- - If the corporation contributes to an individual retirement
arrangement (IRA) for employees, include the contribution in
salaries and wages on page 1, line 8, or Form 1125-A, line 3,
and not on line 17.

I am hoping someone can help me.

ProSeries Professional

This topic has been closed for replies.

dascpa

Level 11

There is no such company plan as an individual IRA. There is a Simple IRA but that's not what you're talking about. The individual is supposed to fund their own IRA. If for whatever reason the company does it, it's really a two-step [theory] transaction - wages to the employee and the employees contributes to their own IRA. Therefore it cannot go on Line 17 since it's not a company plan.

HOPE2Author

Level 7

Thanks@dascpa. Could you please explain it how are throes transactions for Simple IRA, for employer match and employees contribution when employee is more 2% shareholder and non-shareholders there are. I understood when S-Corp is matching it goes line 17 for all of them even more 2% shareholder. And for employees contribution goes box 12 with code S but does have FICA and FUTA. Please correct me.

For #2 (QUESTION 2) still I am confused what does it mean, sorry.

IRonMaN

Level 15

The answer sounded pretty clear to me. You seem to be struggling with questions regarding 1120S returns. Maybe you should pass on preparing those types of returns and stick to whatever you do well.

Slava Ukraini!

T

Terry53029

Intuit Community Champion

What exactly is your question, as the line 17 seems straight forward. You report the company's share that it gave to all employees for a company retirement plan.

sjrcpa

Level 15

And all employees includes shareholders- to tack onto your other post.

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

abctax55

Level 15

ALL of this should be reported as per the working trial balance, with payroll booked/recorded/accounted for.... you do have a working trial balance, right?

Such working trial balance would have gross wages, payroll tax expenses, payroll liabilities at year-end (including any retirement plan *payments* still to be made) tied out & verified.

HumanKind... Be Both

Sign up

Login with SSO

Let's get you signed in

Login with SSO