What am I missing here?
TTB 13-15 states SEP-IRAs allow the employer to make deductible contributions into an individual retirement arrangement on behalf of the employee.
TTB 13-16 says to deduct contributions made on behalf of employees (partners in this case) on line 18, Form 1065. The parnership must make the contributions on behalf of the partners and report the ammount on line 13 of the partner's K-1, code R.
When I enter the SEP-IRA as described on the partner's personal tax return, she also gets a tax break for the SEP.
How can both of these returns (1065 and 1040) receive a benefit from the SEP contribution? Am I suppose to increase the guaranteed payment by the SEP amount contributed on the partner's behalf?
Dazed and confused at this late date. GRRRR.
TTB 13-15 states SEP-IRAs allow the employer to make deductible contributions into an individual retirement arrangement on behalf of the employee.
TTB 13-16 says to deduct contributions made on behalf of employees (partners in this case) on line 18, Form 1065. The parnership must make the contributions on behalf of the partners and report the ammount on line 13 of the partner's K-1, code R.
When I enter the SEP-IRA as described on the partner's personal tax return, she also gets a tax break for the SEP.
How can both of these returns (1065 and 1040) receive a benefit from the SEP contribution? Am I suppose to increase the guaranteed payment by the SEP amount contributed on the partner's behalf?
Dazed and confused at this late date. GRRRR.
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