Maximum Keogh Deduction

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I've completed my taxes except for the K-1 we'll be receiving. My wife retired last year (1 person business) and this will be the last K-1 we'll be receiving (ie, she is no longer a partner in the LLC.) I'm getting a tale of woe about when the K-1 will be available. I'd very much like to send in the Keogh contribution based on her regular income so we can roll it into a regular IRA and have more flexibility with it. I looked at last year's taxes and the income from the K-1 doesn't seem to enter into the maximum Keogh contribution calculation. But I'd like to make sure. So my question is: Does the income from a K-1 affect the maximum Keogh contribution from her regular income?

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MaryK4

Alumni - Intuit

The K-1 income would not affect her KEOGH contribution from her self-employment business since it is based on income from that particular business. Any distributions from the partnership would not factor, however, if the partnership has a retirement plan, that may affect her overall contribution limit.

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TRWAuthor

Level 2

In the second sentence, did you mean to say "would factor" instead of "would not factor"? The partnership does not have any retirement plan.

PatriciaV

Alumni - Intuit

Yes, if the partnership has a retirement plan or if your spouse has self-employment income reported on Schedule K-1, the maximum KEOGH contribution limit may be affected. Partnership distributions in general are not self-employment income.

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