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November 12, 2023
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How do i classify payments to a individual 401k? I am small business LLC that utilizes guaranteed payments and not payroll to pay myself.

  • November 12, 2023
  • 1 reply
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I cannot find an expense for "retirement" or 401k.  Can i just create an expense for this?
Best answer by Service

I'll throw something out and see if it makes sense to you. In many ways, what you do in QBO doesn't matter as much as what your accountant does with the information. So you could set up an account for those payments in a number of ways, and your accountant will just take that total and put it onto your tax form in the correct way. You could just put it under payroll expense if you want. 

1 reply

Service
ServiceAnswer
November 15, 2023

I'll throw something out and see if it makes sense to you. In many ways, what you do in QBO doesn't matter as much as what your accountant does with the information. So you could set up an account for those payments in a number of ways, and your accountant will just take that total and put it onto your tax form in the correct way. You could just put it under payroll expense if you want. 

tammy107Author
November 15, 2023

Thank you!!  We had recently come to that conclusion, since QB is just a tool to manage our financials and make it easier to complete our taxes.  Thank you for sharing that, very helpful perspective.