SIMPLE-IRA
My client is a partner in a small 3 person law firm. Can he open a SIMPLE-IRA for himself based on his share of the partnership income which he receives on a K-1 Form? There are a number of reasons why the partnership does not want to fund a SIMPLE Plan or 401(k).
Permalink Submitted by Alan Spross on Thu, 2011-05-05 20:54
No, since the partner is not the employer, the partnership is.
If it was just the 3 of them, the partnership could establish the SIMPLE IRA and the other two could elect not to participate, but there are probably other clerical workers on payroll so this would probably not work for them.