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Simple IRA for 1065 members

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    Simple IRA for 1065 members

    Here is the issue:
    The employess are no problem as they defer 3% and the llc matches 3% and it nicely flows to the w2.

    The members are getting money put into the simple as a "deferral" and then they are putting in another 3%.

    I think the 3% should be coded as guaranteed payments to the member and credit the retirement payable.

    What do others do when members put money into a simple plan?


    Put it on Line 13, K-1

    The partner’s (or LLC member’s) elective deferral to the SIMPLE plan is entered on line 13 of the K-1, code R. The employer’s match (the LLC’s match) is based on line 4 of Schedule SE, and is also enter on line 13 of the K-1. That amount is then entered on the partner’s (LLC member’s) line 32, Form 1040.

    See line 13 instructions for the K-1. It tells you to put it there.