Question

how to enter an llc partnership 401k contribution in turbotax home and business

Forum|Forum|6 years ago
September 16, 2019
1 reply
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I am using TurboTax Home and Business. I am a partner in an LLC with a K1. The K1 does not show my 401k contribution explicitly on the form, however it does reference it in the notes. What menu steps do I take to get to the proper form to enter the 401k contribution? Is it as simple as identifying the correct form and manually entering the information? If so what is the correct form?

TurboTax Home & Biz Windows

D

dmertz

Employee

Any retirement contributions made through the partnership should have been reported on Schedule K-1 (Form 1065) with code R in box 13 and your net earnings from self employment supporting the contribution reported with code A in box 14. Contact the preparer of the Schedule K-1 for a correction.

(If the K-1 is Schedule K-1 (Form 1120S) is from an S corp, it's not from a partnership and your contribution should have been reported in box 12 on your W-2 from the S corp and would be entered only in box 12 of TurboTax's W-2 form.)

D

dansawyerorAuthor

Thank you. I went round and round with the tax person on this and he refused to budge. The best I got was a note of the K-1. Is is not an S-Corp, there is no W-2. What form can I use to report the contribution?

D

dmertz

Employee

What is the K-1 preparer's reason for not making the entries in boxes 13 and 14? To make any contribution to the 401(k) through a partnership you must have income from self-employment reported on your tax return and pay the associated self-employment taxes. If you have no self employment income, any contribution to the 401(k) is an excess contribution. Excess contributions can jeopardize the qualification of the entire 401(k) plan.

If you truly received income from the plan that qualifies as self-employment income and the K-1 preparer refuses to properly prepare the K-1, about all I can suggest is to make the necessary box 13 and box 14 entries, mail your tax return with an explanation statement regarding these missing entries on the Schedule K-1 and let the IRS sort it out, hopefully in your favor.