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- W-2 Salary vs. Distributions vs. K-1 for S-Corp Owners
For S-Corp owners, understanding the difference between W-2 salary distributions, and K-1 profits is essential for maintaining compliance with IRS regulations and optimizing your tax strategy
- Retirement Account Options for the S-Corp Owner
If you own an S corporation, there are several options available to you In today’s post, I’ll give you the lowdown on the five main options so you can think through what’s best for your company and your future The two most common types of retirement accounts are IRAs and 401 (k)s
- Retirement plan FAQs regarding contributions - S corporation
Can I contribute to the company’s 401 (k) plan or establish a self-employed retirement plan based on my S corporation distributions? No Contributions to a retirement plan can only be made from compensation, which, in the case of a self-employed individual, is earned income
- How S-Corp Owners Should Pay Themselves
If an S-Corp owner wants to prioritize higher retirement contributions, they may opt to increase their W-2 salary to allow for larger tax-deferred employee contributions
- The Right Ratio Between Salary And Distribution To Save On Taxes
If you own an S-Corp, the ideal tax situation is to pay yourself $0 salary and the remaining balance in distribution This avoids paying the 15 3% in self-employment taxes
- S Corp Owner Compensation: Salary vs. Distributions
As an S Corp owner, you’re required to take a salary—but you can also receive distributions, which aren’t subject to self-employment tax Understanding how to strike the right balance between salary and distributions is key to staying compliant and maximizing savings
- S-Corp Reasonable Salary: IRS Guidelines Calculator | SDO
Learn how to determine an IRS-compliant S-Corp's reasonable salary Avoid penalties with market-based calculations, documentation strategies, and state-specific guidelines
- S-Corp Salary Calculator 2025 - Optimal Owner Salary Calculator
Calculate the optimal S-Corporation owner salary for maximum tax savings while ensuring IRS compliance Determine reasonable compensation, analyze tax implications, and optimize your S-Corp tax strategy with our comprehensive 2025 calculator
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