Where do I enter the Company share of Simple IRA for owner on 1120S

[cdicfo]

This is rather frustrating since every search leads me to a search for Adjustments to Income (which does not pop in Proconnect search field) or seems totally unrelated. I need to know where to enter the amount paid by the Company to the Owner's Simple IRA. Yes, he is a W2 employee and yes the amounts withheld were properly reported on the W2 - I just need to get it reported on the 1120S and K1 and I am NOT finding the right road map.

[TaxGuyBill]

https://www.irs.gov/instructions/i1120s#en_US_2021_publink11515kd0e3240

[cdicfo]

I  know what the tax rules are - I need to know where in the Proconnect program I enter the company match. All of the instruction say to look for Adjustments to Income and nothing comes up with a search in the input search field. I cannot find the input field. 

[sjrcpa · Accepted solution]

It's pension expense on the 1120S.

[cdicfo]

So it doesn't have to be broken out on the K-1 for the Sub S?

[cdicfo]

btw - thanks for the super fast response - I'm obviously up against the deadline.

[sjrcpa]

Not for an S Corp.

Partnerships are different.

[qbteachmt]

Did you try the Help articles:

https://proconnect.intuit.com/support/en-us/help-article/federal-taxes/entering-sep-simple-qualified...

https://proconnect.intuit.com/support/en-us/help-article/federal-taxes/generating-qualified-retireme...

[cdicfo]

Been there, but searching for "Adjustments to income" in Proconnect search fields yields no results. I'm going to search in the IRS 1120S instructions and very where it is supposed to land and work backwards into the Proconnect nuance. If it's pension - I'm good, but I thought I should be sure. 

[sjrcpa]

There is no "Adjustments to Income" on an 1120S.

[cdicfo]

Well, that explains it! Company match is going in Pensions field and I'm filing a 5500 EZ, I really try not to be this tight on the deadline - but here I am.

[sjrcpa]

Does a SIMPLE Plan need to file a 5500?

[cdicfo]

The IRS pub says a 5500EZ is required.

[George4Tacks]

@cdicfo Which pub?

https://www.irs.gov/retirement-plans/plan-sponsor/simple-ira-plan#:~:text=Filing%20requirements%3A%2....

[cdicfo]

Instructions for  Form 1120S, Page 19, Instructions for Line 17, reporting requirements for for single owner Sub S Retirement.

• Form 5500-EZ, Annual Return of A One-Participant (Owners/
Partners and Their Spouses) Retirement Plan or A Foreign Plan.
File this form for a plan that only covers the owner (or the owner
and the owner's spouse) but only if the owner (or the owner and
the owner's spouse) owns the entire business.

[abctax55]

I can't take this any more.....

Directly from the IRS:

https://www.irs.gov/retirement-plans/plan-sponsor/simple-ira-plan:

What are the filing and notice requirements?

Filing requirements: An employer generally has no filing requirements and does not need to file an annual Form 5500 return.

And the Employer (i.e. the S Corp) match is just an expense.  Put it on any line.  EE benefit, other expense, just pick one.   I don't use the pension/profit sharing line because (IMHO) it isn't either of those.

[cdicfo]

I'm not sure what you can't "take" any more. I have contacted the Plan Administrator to confirm THEY are not aware of a filing requirement. Then I'm move forward based on that information. We all know that IRS codes and regs are not always carved in stone and we have to interpreted whatever treatment we believe best serves the cx. 

[sjrcpa]

When an area is grey, we can interpret in our client's favor. This is not grey.

[abctax55]

OK... file that F 5500.  Let us know what happens.

[cdicfo]

The financial advisor has already returned my query and says that yes, the form is required, but only with the balance reaches $250,000 - we're not there yet, so it won't be filed. However, some folks here need to develop a better attitude when you are responding to questions. Good grief. Does anyone here have the entirety of Title 26 memorized including the dozens of changes made in the last 5-10 years? I've been at this for 40 years and I am more than familiar in the subject areas I have handled. But when I am in new territory, and I'm trying to get the software to cooperate, it is helpful to have an adult conversation. PS - I DO review a return to verify that things landed as I thought they should. The software is quite a leap from typed returns, but I still make sure the end results reflect the best outcome for my clients. Thank you to those who responded with helpful articles and support. 

[sjrcpa]

Under type of plan I'd like to see the Code for SIMPLE IRA.

[sjrcpa]

Are you sure it is a SIMPLE IRA and not some other flavor?

[abctax55]

Susan, me too.

Perhaps the financial advisor should prepare the F 5500?

[cdicfo]

It is a Simple IRA. 

[cdicfo]

Not all of the companies that handle this accounts will prepare the forms. I noted somewhere in this thread that he said the 5500EZ is not required until the fund has a balance of $250,000 or more. I have a good relationship with this client's financial advisor. I don't always agree with him, but we usually find common ground.