Hi everyone, we have a multi member LLC with 3 partners. My understanding is that we could create a Solo 401k individually for each member and this will allow both: employee and employer (Profit-sharing) contributions. Employer contributions will depend on self employment income (Schedule K-1, Line 14).
I have also read that the Solo 401K are individual accounts. One member can choose to use the Solo 401k even though others don't want to as each member's contributions are based on their individual self-employment, not the LLC's overall profit-sharing decisions.
Is that correct?
My main question is if these employer contributions are meant to appear somewhere in the 1065 and K-1.
I know 1065 Line 18 (Retirement plans, etc.) and K-1 Line 13 Code R are meant to include retirements amount for SEP IRA or qualified 401 sponsored by the LLC...., but should they also include contributions to Solo 401 (k) or these are just declared for the Individual taxes?
Thank you in advance
