Don Dwoske wrote:

- quote -

I've done some reading, and this is what I think I should
do.

Again, I'm in an LLC (partnership), I pay myself via
guaranteed payments, and have just opened a solo 401k plan -
I've been trying to figure out how to list the 401k
contributions on my forms.

1. contributions to the plan do not show up on the 1065 -
this is because I am a partner, and only common law employee
contributions are shown as deductions here. we have no
employees.

2. contributions - both employer and employee show up on
line 11 of the K-1 given to myself. this amount can be
max, $40,000

3. the amount of guaranteed payments listed on the K-1 line
10 is still the entire gross income (pre 401k deduction)

4. I will list my entire income (pre 401k deduction) on line
17 of 1040

5. I will list the entire 401k contribution (employer +
employee) on line 30 of 1040 as a deduction

6. Need to pay SE tax on the entire income amount, but only
federal income tax on the net (gross - 401k contrib.)

7. No 5500 is required, the total amount in the 401k is <
$100,000

Sound good?

-Don

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I own an L.L.C in a Partnership situation. This past year
we started an Individual 401k plan. We have both elective
and partnership contributions to this plan, and I've read
some confusing things about where to note this in the return
forms, do they go on the 1065 or passthrough to the k-1 ?
(I thought the k-1, but don't see where to put it)

Assuming a maximum situation where the individual
contribution was the $12,000 limit and the partnership limit
of 25% could fill in the rest up to the $40,000 limit.

$12,000 individual
$28,000 partnership

Also the total contributions so far are less than $100,000
so I believe I do not need to fill out a 5500, is there
anything else we must do?

Will I need to pay SE tax on the entire income, or income
less 401k contributions? We will be having a CPA doing our
taxes, but if this part is easy, I'd like to get our 1065
and k-1 out before then.

Thanks,
Don

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