The retirement plan must be established under the partnership and contributions must be reported with code R in box 13 of the partner's Schedule K-1 (Form 1065). A partner is not permitted to establish a separate employer plan with respect to compensation from the partnership, otherwise there would be a violation of the requirement for equal treatment of all of the partners with respect to the retirement plan. The deduction for the contributions reported with code R in box 13 is taken on the partner's individual tax return.
