First year being a K1. I am a partner in the firm
My K1, form 1065, has Ordinary business income ( Box 1) and SElf Employment Earnings (Box14A).
I opened a SEP IRA at the start of 2021 thinking I could fund the IRA using the BOX 14A as basis.
Fast forward to tax time and I am being told I should not have opened an independent SEP IRA because: Partners or members of an LLC taxed as a partnership are considered employees for retirement plan purposes, and thus cannot have individual SEP plans, according to the IRS.
Is this true?
