For 2013 and later years, where are Solo 401k plan employer profit sharing contributions for a Partnership deducted?
Partners deduct employer contributions (profit sharing contributions) made to a 401k plan including a solo 401k plan or self-directed 401k on Form 1065, U.S. Return of Partnership Income. Contributions made for the partners are reflected on Schedule K-1, Partner’s Share of Income, Deductions, Credits, etc., which must be attached with Form 1065
For 2013 and later years, where are Solo 401k plan employee (salary deferral) contributions for a Partnership deducted?
Partners deduct solo 401k plan or self-directed 401k contributions for themselves (known as salary deferral/employee contributions) on their own Form 1040, U.S. Individual Income Tax Return. Although the Form 1040 deadline with extensions is October 15 (for calendar-year taxpayers), for solo 401k plan contributions to be listed on Form 1065, partners must make solo 401k plan contributions by the partnership deadline.
Effective for 2008 tax year and after, calendar-year partnerships that file for an automatic filing extension will have five months (i.e., September 15) to file Form 1065. Partnerships and partners with noncalendar tax years must adjust accordingly.
The maximum Solo 401k contribution for tax year 2017 is $54,000 plus $6,000 if you are 50 or older in 2017. To learn more CLICK HERE.