Partnership 401(k) Entry

Forum|Forum|4 years ago
March 1, 2022
1 reply
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Partnership has 2 partners that contributed to the company 401(k) and the company matched some of that. My understanding is that this is to be entered both as a guaranteed payment and on line 13d, code R. But that is putting the return out of balance by that amount. How do you make this work in Lacerte?

Lacerte Tax

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sjrcpa

Level 15

The deferral is a part of the Guaranteed Payment. Might your GPs already be recorded at Gross?

I've never put the "employer" match as Guaranteed Payment. For book purposes it is part of the overall pension expense.

The match goes on the K-1 as 13R. If the deferral messes up the balances, I disclose it in a statement.

I know this gives me fits some times.

The more I know the more I don’t know.

A

amecAuthor

Level 5

The entries were pretty much, debit GP (401k contribution), credit cash. So, let's say $10,000, including match. There are no other GP's.

If I input $10,000 as GP to line 4a on schedule K and I input $10,000 as retirement contribution as Line 13d, code R, I'm out of balance by $10,000. And I can't figure out how to input this to make it work.

sjrcpa

Level 15

GP = the deferral. Disclose as a statement on the K-1 (Supplemental Info).

The match goes in 13d R.

The more I know the more I don’t know.

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