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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28904
Experience:  Taxes, Immigration, Labor Relations
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Chrissy 401(k) JA: Thanks. Can you give me any more details

Customer Question

Chrissy 401(k)
JA: Thanks. Can you give me any more details about your issue?
Customer: Where would you report the matching contribution on behalf of the partners on the 1065 and/or K1
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Submitted: 11 months ago.
Category: Tax
Customer: replied 11 months ago.
Any idea of the time frame on a response?
Expert:  Lev replied 11 months ago.
For retirement plan purposes, each partner or member of an LLC taxed as a partnership is an employee of the partnership.If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., you receive from the partnership.The partnership:• deducts plan contributions for employees other than the partners as a business expense on Line 18 of 1065• reports plan contributions for partners in Box 13, using Code R, on each partner’s K1 .Partners deduct plan contributions they make for themselves on Line 28 of their Form 1040, U.S. IndividualIncome Tax Return.The same reporting for partners regardless if that is elective contributions or employer matching contribution.Questions?
Customer: replied 11 months ago.
Thanks. So how is Box R handled on each partners 1040?
Expert:  Lev replied 11 months ago.
Your social security disability benefits might be ONLY affected if you have earned income - wages reported on W2 form or self-employment income reported on form 1099misc box 7.Any other income - retirement distribution, settlement would not affect your social security disability benefits.HOWEVER if you are receiving SSI benefits - supplemental security income which are needs based - then any type of income might affect your eligibility.
Customer: replied 11 months ago.
So are the matching contributions on behalf of partners non-deductible?
Expert:  Lev replied 11 months ago.
Partners deduct plan contributions they make for themselves on Line 28 of their Form 1040, U.S. Individual Income Tax Return.Please ignore above post - it was posted by mistake.
Customer: replied 11 months ago.
So on line 28 the partner would have their elective deferrals, and their matching contribution combined?
Expert:  Lev replied 11 months ago.
Yes - correct - same reporting for partners regardless if that is elective contributions or employer matching contribution.Both are deducted on form 1040 line 28.The partnership itself may not deduct contributions made for partners.
Expert:  Lev replied 11 months ago.
..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.