Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

SIMPLE retirement

Greta
Level 9

Can SIMPLE retirement plan be set up for client who has an AirBNB LLC with net income.

0 Cheers
1 Solution

Accepted Solutions
IRonMaN
Level 15

Then the partnership needs to setup the plan.


Slava Ukraini!

View solution in original post

7 Comments 7
IRonMaN
Level 15

Yes, if you are reporting the income on a schedule C.


Slava Ukraini!
Greta
Level 9

Income is reported on a partnership return 1065. My client is one of partners.

0 Cheers
IRonMaN
Level 15

Then the partnership needs to setup the plan.


Slava Ukraini!
Accountant-Man
Level 12

Is the partnership income being reported BOTH on line 1 ordinary income AND self employment income of the K1?

** I'm still a champion... of the world! Even without The Lounge.
0 Cheers
Greta
Level 9

Yes, reported as income subject to self-employment tax.

If client sets up a SIMPLE plan (before Oct 1) with his broker, does this get reported on the K-1, and where on 1040 as a deduction?

0 Cheers
qbteachmt
Level 15

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-simple-ira-plans

"If you are a sole proprietor or partner, however, you would deduct your own salary reduction contributions and your own matching or nonelective contributions on Form 1040, line 28."

You are doing this for 2022, right? And for all partners; not just this one partner.

*******************************
"Level Up" is a gaming function, not a real life function.
Accountant-Man
Level 12

It ends up on line 16 of the 1040, where it says "Self employed SEP, SIMPLE, and qualified plans."

You should enter it on the 1065 K-1 line 13R, "Pensions and IRAs." Additional Info, Code R, line 5, "SIMPLE."

** I'm still a champion... of the world! Even without The Lounge.