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Solo 401(k) contributions

Carrie_WCarrie_W Member Posts: 14

As a sole proprietor, I have set up a solo 401(k) that I plan to contribute to both as employer and employee. I assume that I should record employee contributions as owner drawings, but I'm curious as to how I should record employer contributions.
I see there has been some discussion of this in the past, but with recent updates to Wave's interface I'm wondering if anything has changed.

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    MikegMikeg Member Posts: 995 ✭✭✭

    Carrie_W,
    Sole Proprietors are not able to deduct either 401k contributions on Schedule C (employee contribution or employer match). Contributions to a solo 401k would go on Schedule 1 of the 1040. The contributions would be considered owners draw.
    Mike G, CPA
    www.mgfinancial.net

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