K-1 Income
What if any retirement plan or IRA options available for someone with K-1 non passive income.
No employees. Amount is approximately $10K.
It is not enough for K-1 income to be non-passive.
Only self-employed earned income qualifies to adopt and contribute to an employer retirement plan.
Only IRA compensation qualifies for making an IRA contribution.
Examples of K-1 income that is not compensation, eligible for retirement account contributions.
S-Corp shareholder distributions.
Partnership distributions to general partners with non-martial participation.
Partnership distributions to limited partners.
Real Estate distributions to “Real Estate Professionals.”
Etc…
Bottom line: If the K-1 distribution is not compensation, it is not eligible for retirement account contributions.
Permalink Submitted by Alan - IRA critic on Tue, 2021-06-15 22:38
An IRA contribution can be made with any Box 14 (self employment income) on a partner’s K-1.