I receive K1 income through a family rental property. If i contribute the total amount received to my 401k will that offset my taxable income at a 1:1 ratio?
I am somewhat in disagreement with the other responses here. It depends on the type of income reported on the K-1 as well as other types of income you may have from other sources. Rental income is passive income and doesn't count for jack squat for retirement contributions. Retirement contributions can only be made against *EARNED* income. So unless you have "EARNED" income from other sources, contributions made from passive income will result in a penalty being assessed every year, until you remove that contribution and the earnings of that contribution from the 401(k) account.
