Which is not the same as "so easy a monkey can do it." LLC taxed as a partnership suddenly, for the first time had a December 2006 disbursement for a SIMPLE contribution. Check written from partnership to brokerage. Asked partner. It was for a SIMPLE contribution for the 90% partner. Apparently, no one else joined, no employees joined (two full time employees and a few more part time or short term). Is this a deduction on the 1065? Does it go on the K-1 of the 90% partner. (Or, 90% on his and 10% on other partner's K-1?) Does he then deduct it on his 1040 page 1? All of the above? I printed out and read the IRS pub and am more confused than before I started. How much is the partner's contribution and how much is the partnership's matching contribution. Partner's guaranteed payments are in excess of $100,000. Thanks for any guidance. I guess the theory from the IRS pub makes some sense to me, but applying it on the two tax returns involved has me going in circles. First time I've had a SIMPLE in practice. Partnership wrote out the check, not the partner personally. With no salary, I can't understand about salary reduction and partnership matching and other terms that make sense for 401(k)s but not this. Why so late in the season?
-
-
TTB, page 13-18 under "Where to deduct SIMPLE IRA contributions" tells you where to deduct the SIMPLE IRA contributions. It even has an example of a partner in a partnership where a SIMPLE IRA contribution is made. -
Thank you
Why thank you, Bees. I've been so busy reading the IRS pubs, that I didn't check TTB. And, yes, I did buy it this year and have been using it for lots of other questions. Time to get some sleep, so I can stay awake in church on Easter morning! Happy Easter, Bees and everyone.Comment
Comment