Partner SIMPLE contribution

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  • natiro
    Senior Member
    • Jun 2005
    • 152

    #1

    Partner SIMPLE contribution

    I'm confused about how to report a partner's simple plan contribution.

    Partner contributes 10,000 to simple plan for 2006 (deferral amount). Contribution is made in 2007. Partnership recorded the payment as a distribution in 2007.

    What adjustment should be made to the p-ship's books for 2006 to record the transaction?

    I believe the 10,000 should be reported on 2006 K-1, line 13. Is that correct? Do we also report the employer contribtion on line 13? If so, I'm not clear how we would do this. How would the p-ship know what the 3% amount would be? The partner has unremibursed expenses that he is deducting on Form 1040 which will afffect self employment earnings.

    Thanks for any info that would clarify this for me.
  • Bees Knees
    Senior Member
    • May 2005
    • 5456

    #2
    See TTB, page 13-18, 1st column under the heading "Where to deduct SIMPLE IRA contributions." The example shows how a partner in a partnership figures the amount to deduct.

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