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February 28, 2024
Question

How do Owners Track 401K and Match amounts for Owner's Draw - Desktop

  • February 28, 2024
  • 1 reply
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Hello everyone,

I'm using Quickbooks DesktopI just started a PEP 401K plan with Fidelity and was able to figure out how to track my employee contribution and match amounts through the payroll items lists, but my question is, How are Sole Prop owners that take an owner draw track their 401k contributions and match amounts to show participation and NDT? Is an end-of-the-year statement from Fidelity sufficient to use against your gross income for that year?

 

Could someone who is doing this unpack it for me?

 

Thanks so much!

 

TF

1 reply

BigRedConsulting
March 16, 2024

I'm not completely sure, but I don't think and of the contributions or company match amounts are an expense to the company for the owner when it's a sole proprietorship. They're both draws. They're reported on the owner's 1040, and not via the Schedule C.  If it's not a ROTH 401k, then it will reduce taxable income on the 1040.