K-1 income (LLC)
Cannon owner of an LLC taxed as a partnership and use K-1 income towards retirement plan contributions?
I’ve looked this up on this board as well as others and there are number of answers – any clarification is much appreciated
Thank you
Permalink Submitted by David Mertz on Fri, 2016-02-26 00:57
Yes, income from the partnership is compensation for making retirement contributions to the extent that the income is shown in box 14 of the Schedule K-1 (Form 1065) as Net Earnings from Self-Employment.