401k Contributions From Personal or Biz Acct?
Hi,
I cannot find any literature from the IRS on whether contributions to a Solo 401k from an LLC taxed as an S Corp have to come from the businesses account or if they can come from a personal checking account. My accountant is saying one thing and my 401k provider is saying another. Anyone have a definitive answer here?
From the accountant:
Both liabilities show up on the corporation’s books and both need to be paid by the corporation. The contributions have to come from the Company because the Company has withheld the $18K from your pay checks and has the fiduciary duty to pay it to the 401K. The employer discretionary contribution has to be made by the employer. The due date for contributions is the due date of the tax return (S Corporation) plus extensions.
From 401K provider:
You can make the contributions from your business or personal checking account as long as the funds stem from self-employment income.