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sjk_1986
April 4, 2025
Question

IRA contributions directly from business

  • April 4, 2025
  • 1 reply
  • 0 views

The owner of an s corp made a traditional IRA contribution directly from the s corp business account. Is this logged as a business expense, an owner distribution, etc.? How do I correctly log this in Qucikbooks- please help! Thank you in advance!

1 reply

G
GlinetteC
April 4, 2025

Recording IRA contributions in QuickBooks depends on your contribution method, sjk_1986.

 

For accurate QuickBooks recording, consider consulting your accountant to tailor entries to your financial needs, ensuring correct transaction categorization.

 

I'm sharing this article to learn how to set up a retirement plan deduction or a company contribution in QuickBooks Online Payroll: Set up or change a retirement plan.

 

If you have any more questions with QuickBooks, feel free to reach out, and I'm here to help you every step of the way.

S
sjk_1986Author
April 7, 2025

Thank you for your response and yes, will definitely consult the CPA. I was just trying to understand for my own edification. 

 

I'm not sure what you are specifically referring when you say contribution method- this transaction wasn't through payroll and there is no existing retirement plan established. The owner is the only employee. 

 

The owner simply EFT'd funds from his business checking account directly to his outside traditional IRA brokerage account (without first consulting CPA or financial advisor). So, I have a downloaded transaction that is in my for review tab, that shows these funds leaving his business checking account. I'm simply trying to understand where/how I should place this specific transaction now that it's a downloaded transaction from his business checking account. I can place it in the "Ask Accountant" category and wait for the CPA, but was hoping someone on here would be able to provide further insight for my own curiosity in the meantime.

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