PARTNERS DEFERRED AND HAD A PARTNERSHIP LOSS

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Partners deferred into their plan during the calander year of 2004. They had a net loss in the partnership. What should be done with the deferrals and match contributions on behalf of the partners?

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You need to get advice from the Pship's accountant as to whether the net loss affects "net earnings from SE" on the K-1 which determines how much a partner can contribute to a qual plan for deduction purposes on the 1040. In partnerships net losses can be classified differently depending on the traunche in which the loss is placed by the employer's accountant, e.g. capital account vs income account.