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solo 401k with Sch C and K-1..?

Technical topics regarding tax preparation.
#1
rblaria  
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8
Joined:
22-Jan-2018 2:17pm
Location:
New York
A client has had a Sch C business for a while. She has a solo 401k plan.

Last year, she became a minority partner of a partnership. This partnership is losing money for now, and she has no capital contributed..But she receives guaranteed payments from the partnership. The partnership has no retirement plan set up.

In calculating MAX 401k contribution figure, can she include the guaranteed payments as her business income?
I don't think she can...but any opinions on this?
 

#2
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4-Mar-2015 4:37pm
Location:
San Francisco
For retirement plan purposes a partner is considered an employee of the partnership, even though it's "self-employment" income in other contexts. A 401k plan would need to be established by the partnership to receive contributions based on a partner's income.
 

#3
rblaria  
Posts:
8
Joined:
22-Jan-2018 2:17pm
Location:
New York
tb_in_sf wrote:For retirement plan purposes a partner is considered an employee of the partnership, even though it's "self-employment" income in other contexts. A 401k plan would need to be established by the partnership to receive contributions based on a partner's income.


Thank you.
 


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