I own an S Corp. I am the only employee. I have a 401(k). I am the participant and the administrator (duh, since I am the only employee). I understand that for 2015 and 2016 the total overall contribution I can make to my 401(k) is $53,000. Does this have to be $18,000 employee salary deferral and $35,000 employer contribution, or can it just be entirely a $53,000 employer contribution?
In other words, is there any prohibition on my S Corp just paying the entire $53,000 into the 401(k)?
If there is no prohibition, is there any downside to doing this?