W-2 Experts S Corp

[ICOUNT]

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?

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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.

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