A SIMPLE IRA employer match for an employee belongs on Line 19, pension and profit-sharing plans.
Why line 19
The employer side of a SIMPLE IRA, the matching contribution or the 2% nonelective contribution, is a cost of employing people, so it goes on line 19. The employee's own salary deferral is different: it is their pay, already inside the wages you reported, so it is not a second deduction. Your own match on your self-employment earnings is not line 19 either, it rides on Schedule 1 with the rest of the owner's retirement deduction.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a SIMPLE IRA employer match for an employee lands on Line 19 without you sorting it.
Start for freeWhat a SIMPLE IRA employer match for an employee is confused with
- Line 26, wages
- An employee's elective deferral is part of the wages already deducted on line 26, so only the employer match or nonelective contribution is added on line 19.
- Schedule 1 line 16, schedule 1 line 16, self-employed retirement plans
- The match calculated on your own self-employment earnings is the owner's retirement deduction on Schedule 1 line 16, not a line 19 business expense.
Examples that belong on line 19
- $1,500 of matching contributions for an employee deferring from a $50,000 salary
- $1,000 of 2% nonelective contributions for an employee who deferred nothing
- $2,900 of employer match across three employees for the year
- $620 of match for an employee who left in August
What does not belong here
- The employee's own deferral, which sits inside the wages already deducted.
- Your own match on your self-employment earnings.
- A penalty or correction payment for a late deposit, which is not a plan contribution.
The limit that applies
The employer contribution has to be funded by the due date of the return, including extensions, to be deducted for that year.
What to keep
Keep the SIMPLE IRA plan documents, the annual notice given to employees, payroll records showing each deferral, and the custodian statements showing the employer deposits. Deposit dates matter, because the employer contribution has to be funded in time to count for the year.
Other expenses on line 19
| Expense | Line |
|---|---|
| a 401(k) employer contribution for an employee | Schedule C, Line 19 |
| a retirement plan administration fee | Schedule C, Line 19 |
| a SEP-IRA contribution for an employee | Schedule C, Line 19 |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a SIMPLE IRA employer match for an employee lands on Line 19 without you sorting it.
Start for free