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Microsoft Dynamics GP (Archived)

Taxable 401k Benefit - Employer Portion

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I have a customer who needs to have their 401k employer portion of the benefit taxable.  I followed Christina's article listed below on setting up the 401k match for the employee which works well.  However, it doesn't allow you to mark the employer's benefit at taxable and when you select the "Subject to taxes" checkboxes they get the error message "A taxable benefit cannot be based on a deduction". 

https://community.dynamics.com/gp/b/gpdynland/archive/2010/07/27/401k-match-make-sure-you-get-your-money-33.aspx

 

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  • Suggested answer
    John Lowther Profile Picture
    5,122 on at
    RE: Taxable 401k Benefit - Employer Portion

    You might want to check with the IRS on this one. I don't think you can legally tax the Employer (benefit) part of a 401K plan. But then I am neither a lawyer or a CPA.

    Hope this helps,

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