Solo 401K and W2 Reporting

nxy — Thu, 31 Dec 2020 17:11:28 GMT

Hi,

I am doing my first year of Solo 401K, and I have questions about how to report that on W2 through square payroll.

1. I did not find solo 401K as option for square payroll reporting. Does it fall into category of just 401K?

2. Solo 401k has two contributions. 1 = employee contribution/ elective deferral. 2 = employer contribution/ profit sharing. Which of these should go on W2 as benefits?

3. Are these contributions supposed to count in box 1 of W2?

4. Also here is the slightly off topic questions, but in case if anyone knows. I have my solo 401K under Vanguard, but they let me transfer from one bank. Am i supposed to contribute both employee and employer contributions from one account or two separate accounts? I assume they should come from different accounts but just wanted to double check.

Thank you for your time and knowledge in advance.

Re: Solo 401K and W2 Reporting

Valentina — Sun, 03 Jan 2021 01:03:23 GMT

We aren't able to provide tax advice, and recommend consulting a tax professional if other sellers aren't able to provide some tips here in the Community, @nxy. I also want to point you over to this great resource we have about W-2s - it should get you pointed in the right direction!

According to that page: Box 1: Wages, tips, and other compensation — Total calendar year taxable wages, tips, and other compensation paid to the employee.

Also see: Box 12 D—Elective deferrals to a section 401(k) cash or deferred arrangement. Also includes deferrals under a SIMPLE retirement account that is part of a section 401(k) arrangement.

Also see: Box 12 AA—Designated Roth contributions under a section 401(k) plan.

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Solo 401K and W2 Reporting

Re: Solo 401K and W2 Reporting