1120-S contribution line 17

[HOPE2]

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.

[dascpa]

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.

[Terry53029]

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]

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

[HOPE2]

Thanks but my question is clear. I asked what is deferent between to paragraphs, 1-2.

[sjrcpa]

DAS answered this.

[Terry53029]

The 1st paragraph is for a company plan. The 2nd paragraph is for individual plan

[HOPE2]

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]

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.

[abctax55]

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.

[qbteachmt]

There are two ways to set up a SIMPLE IRA plan. One allows the employer to send money to the employees' own account(s) and that is not required to be held at the same brokerage. Everyone can have a different broker account. Or, the employer restricts the accounts to a specific brokerage.

From the IRS:

Use Form 5304-SIMPLE if you permit plan participants to select the financial institution to receive their SIMPLE IRA plan contributions. Use Form 5305-SIMPLE if you require all contributions under the SIMPLE IRA plan to be initially deposited at a financial institution you designate.

I'm not clear if the question here relates to only the match, or only an employer contribution such as is made in a year where the employees don't necessarily also need to contribute and is more like a year end bonus process? Or only the employee contribution from the 2% shareholders' pay?

There are a lot of factors, so it helps to narrow down what is the issue.

[Vikalp]

Hi,

I am a single member S corp

I have opened solo 410k and contributed employee portion of $22500 deferred compensation for 2023. 

My gross wages are $70000k out of which $22500 deducted for 402k, 7750 for HSA and $4166 for Medical premium

All this is reported on W2.

My question is

As employer can contribute 25% of wages, so what will be. Is it gross wage, box 1 wage from W2 or box 3 wage. 

Then on line 17, what amount should be reported. 

$17500 employer share of contribution or $40000, total of employee and employer?

[qbteachmt]

@Vikalp  

Is this a ProSeries usage question? "Then on line 17, what amount should be reported."

You seem to be lost on the internet.

You’ve come to a Peer User community for Intuit Income Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Tax Preparation programs, and you may be looking for support as an individual taxpayer using TurboTax. Please visit the TurboTax Help site for support.

And try this screen, for the various topics (subforums): https://ttlc.intuit.com/community/discussions/discussion/03/302

Your sign in user info here is the same one you can use over at the TurboTax forum.

Thanks.