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Partner K-1 401(k) not on box 13 code R -??

josephfolsomcpa
Level 4

I have a long time client that made partner in his firm last year so now he gets a K-1 with guaranteed payments instead of a W-2.  He contributed 19,500 to his 401(k) from his guaranteed payments and the partnership matched 11,400 out of the partnership's funds.  This is a total of 30,900.  The 30,900 is included in his guaranteed payments (box 4) and as self employment earnings (box 14a) which I understand is correct.  However, there is nothing in box 13 code R. Instead the K-1 provides this information as a "footnote" and not reported to the IRS.  Does my client need to have his K-1 corrected to show the 401(k) contributions in box box 13 code R or can we just put the 30,900 on schedule 1?  (This is first time I've had this issue)

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3 Replies 3
sjrcpa
Level 15

I'd use the info you were given.

It's hard to get that 401(k) stuff correct in some partnership software. And some preparers don't try or can't figure it out.


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josephfolsomcpa
Level 4

Thanks for the advise!

sjrcpa
Level 15

You're welcome

 


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