2

I have both business and personal checking accounts.

For employee contributions to my self-employed 401k, does it matter for legal or tax purposes which account I draw a contribution from?

Improve this question
1

The account to or from which anything flows shouldn't matter for anything tax related. What matters is that it's correctly accounted for in the books. It's just generally easier to have a separation between personal and business funds if they're in separate accounts. Also note this doesn't apply to all types of businesses. Bigger businesses tend to have stricter audit requirements. This should apply to passthrough businesses.

I'm not a lawyer/accountant/tax advisor.

Improve this answer
3
  • 2
    For a sole proprietorship, this may be true. For other business entities, 401k contributions should be made as part of the business payroll.
    – Rocky
    Jun 26 '19 at 21:54
  • @Rocky: The question is specifically about a solo 401(k) not a payroll plan.
    – Ben Voigt
    Jun 27 '19 at 4:44
  • 2
    Indeed. My comment stands.
    – Rocky
    Jun 27 '19 at 14:46

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.