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K-1 box 13 code "R" amount?

Forum|Forum|6 years ago
June 1, 2019
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On my partnership K-1, In prior years both my profit share (employer contributions) and my employee contributions were summed together and reported in box 13 with code "R", This year only the employer portion is reported in box 13 with code "R", my employee contributions are reported in box box 20 with code "AH", is this correct? How does TT expect it to be reported to properly deduct it from my self employed income?

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Best answer by dmertz

Assuming that these contributions are to the partnership's retirement plan and that is a type of plan such as a 401(k) that accepts elective deferrals, the code R entries in box 13 of the past year's Schedule's K-1 were done correctly and this year's was not. The code R entry in box 13 should be the total of both employer and employee contributions to the partnership's retirement plan. The only reason I can see to report something retirement account related in box 20 with code AH would be if deposits were made on your behalf for your convenience to a regular personal traditional or Roth IRA, in which case the code AH entry is informational only and the corresponding contributions would be reported on your tax return as regular personal contributions, not contributions to a retirement plan of the partnership.

I suggest contacting the preparer of the Schedule K-1 to obtain a correction.

D

dmertzAnswer

Employee

Assuming that these contributions are to the partnership's retirement plan and that is a type of plan such as a 401(k) that accepts elective deferrals, the code R entries in box 13 of the past year's Schedule's K-1 were done correctly and this year's was not. The code R entry in box 13 should be the total of both employer and employee contributions to the partnership's retirement plan. The only reason I can see to report something retirement account related in box 20 with code AH would be if deposits were made on your behalf for your convenience to a regular personal traditional or Roth IRA, in which case the code AH entry is informational only and the corresponding contributions would be reported on your tax return as regular personal contributions, not contributions to a retirement plan of the partnership.

I suggest contacting the preparer of the Schedule K-1 to obtain a correction.

W

winterescapeAuthor

Your assumption is correct. This is our partnership 401(k), I do not have a Roth, all contributions were to our Partnership 401k.

J

john-ct

You don't say if your plan is a SEP-IRA or other. Your contribution may already have been deducted when computing net earnings. See Chapter 4, page 15 of IRS publication 560. You can access it in TTax under Help/IRS publications.