Author Topic: Need help with Individual 401k and taxes- Accountants here?  (Read 787 times)

Grande

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Need help with Individual 401k and taxes- Accountants here?
« on: March 11, 2015, 09:39:46 AM »
This is regarding my wife's individual 401k. She is self-employed and uses an accountant for the bookkeeping side of things. The accountant generates a K1 form which is her income after adjustment. She can contribute 100% of her income up to $17500 (in 2014) The business (it's just her) can contribute much more. I am reading 25% of her income to $52000.

She worked very little in 2014 and made about $16500 last year. We put in $11000 on employee contributions (we didn't know the income before the accountant was done prepping the K1). Using Turbotax it looks like I can contribute another $5500 to make it to the $16500 of her income. The problem is the deadline is 12/31/14 for employee contributions. But it's April 15 for employer contributions. And from what I can see on Turbotax the employer contribution counts toward the $16500 where I want to be. I want to max it out.

My question is does documentation of the additional $5500 employer contribution need to make it to the tax forms I submit for the business? It seem I would have to square that $5500 contribution somewhere. Does the check have to be from the business or can it be a personal check? How do I make sure everything is in order with the IRS?