I think I am missing something. At my work, my contributions to my 403b are deducted from my wages on the W2. This is sent to the IRS, so they know what the taxable income is. My husband is self-employed, and is starting an individual 401k at Vanguard. If I get things right, the contributions are entered with income adjustments on page 1 of form 1040, deducted from gross income, so that adjusted gross income is calculated. How does IRS know that we are reporting the correct number for i401k contributions? Does Vanguard report to the IRS? There is no actual business, he's receiving 1099s, so there is no W2 that we would send to the IRS. Is there something else we need to send them? Thanks.
