ICOUNT Posted January 4, 2008 Report Share Posted January 4, 2008 Join Date: Jul 2007 Posts: 3 Default Experts S Corp W-2 Lets assume a S Corp pays its 100% shareholder (only employee ) $ 50,000 of that amount $ 20000 is contributed to a one man 401 K plan. The Corp also puts $ 3000 in a HSA plan and also pays $ 5000 in health insurance for the shareholder employee. It is assumed that the health Insurance qualifies as a plan( rules have been liberalized by the recent ruling). What amount should show in box 1, box 3 & 5 and box 12. It would be my understanding Box 1 should be 50000-20000+ 5000 or $ 35000. Box 3 & 5 should be $ 50000. Box 12 should show the $ 20,000 401 K contribution and also according to the instructions a w should be entered for the HSA plan contribution. Now assuming the corp wants to make a maximum SEP contribution ---- is it 25% of Box 1 or $ 35000 . In other words can you use the $ 5000 health insurance premiums to maximize the SEP contribution. What amount do you calculate the SEP contribution on? Thanks Reply With Quote I previously posted this on the taxbook forum but only got 1 reply. According to the W-2 instructions the HSA is not included in box1 but should be indicated in box 12. More importantly what amount is the 25% SEP contribution based on and also the amount that is used by SS for reduction of benefits if under 65. ICOUNT View Public Profile Find all posts by ICOUNT Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.