topic 401k from partnership guarantee payments in Deductions & credits

401k from partnership guarantee payments

qofmiwok — Tue, 10 Mar 2026 06:40:40 GMT

I was reading this thread but it's so old I thought I should ask a new question.
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-to-enter-an-llc-partnership-401k-contribution-in-turbotax-home-and-business/00/852476

My question is, isn't there a difference between an employer contribution to a solo 401k or an employee contribution to a solo 401k? Of course guaranteed payments need to be shown on the K1 as self employment income in order to be used for any 401k contributions. But if it's an employee contribution to a solo 401k, would it be shown the K1 as a retirement plan contribution, and deducted by the partnership as an expense? I would think not?

Re: 401k from partnership guarantee payments

Mike9241 — Wed, 30 Nov 2022 06:12:37 GMT

My question is, isn't there a difference between an employer contribution to a solo 401k or an employee contribution to a solo 401k?

it depends on what you're driving at

an employee 401k contribution reduces line 1 of their w-2 but the gross amount of wages is a deduction for the partnership. (any employer match goes on line 18)

instructions for line 18 of 1065 - retirement plans.

Line 18. Retirement Plans, etc.
Do not deduct payments for partners to retirement or deferred compensation plans including IRAs, qualified plans, and simplified employee pension (SEP) and SIMPLE IRA plans on this line. These amounts are reported in box 13 of Schedule K-1, using code R, and are deducted by the partners on their own returns.

Re: 401k from partnership guarantee payments

dmertz — Fri, 09 Dec 2022 04:11:58 GMT

"would it be shown the K1 as a retirement plan contribution, and deducted by the partnership as an expense?"

It should be shown in box 13 with code R but is not deducted by the partnership as an expense. It gets deducted on your individual tax return. In TurboTax Business you simply enter the total of the additions to the plan made on the partner's behalf and the number is placed in box 13 with code R.

The amount shown in box 13 of the Schedule K-1 (Form 1065) with code R should be the total of the employee contributions and employer contributions. When this is entered into TurboTax for your individual tax return, TurboTax will ask you for the breakdown.