This is my first year getting a K-1. I am a member of a law firm (an LLC). I contributed $19,500 to the firm's 401k plan for 2020, yet my Schedule K-1 does not appear to reflect this contribution anywhere. Should it be listed in Part III, Section 13, code R? (It's not.) Or is it possible it was already deducted from ordinary business income?
Thank you in advance.
Doublecheck with your firm. If you did not receive a W-2 it's unlikely your 401(k) contribution was deducted from your income.
Your contribution should flow had there been an amount in Box 13, Code R.
Otherwise, to enter a 401(k) contribution from partnership income:
See how to enter an llc partnership 401k contribution in turbotax home and business
Thank you. I will check with my firm. Can you please explain what you mean by "Your contribution should flow had there been an amount in Box 13, Code R."?
If you enter an amount into TurboTax from Form 1065 Schedule K-1 Box 13 Code R and then enter the amount on the next screen (Enter Code R Detail) as a 401(k) contribution, TurboTax will automatically carry the amount over as a self-employed retirement deduction on Form 1040, Schedule 1, line 15.
In other words, it will be deducted from your 1040 income but not directly against your K-1 income, i.e. it reduces your total taxable income instead of your net partnership income, which is generally the way such contributions are handled.