Partner 401(k) contributions

Technical topics regarding tax preparation.
#1
markm  
Posts:
55
Joined:
19-Aug-2016 8:19am
Location:
Massachusetts
What is the correct way to account for partner 401(k) contributions? I have seen it done two ways:

1) Elective deferrals and employer match both reported as guaranteed payments and both reported in Box 13R

2) Elective deferrals and employer match reported as distributions with an M-1 adjustment and both reported in Box 13R

The net S/E income to the partner is the same in both scenarios and the partners will still deduct the amounts in Box 13L on their 1040s.

I'm just not sure for book purposes if the contribution amounts should be on the balance sheet or the P&L.
 

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