Partners of LLC - Pension Deductions

[Gary]

Two spouses are the two partners of an LLC.

They each receive separate Schedules K-1 reporting their self-employment income subject to SE taxes.

Say the net SE income (after 50% SE tax deduction) is equal to 200k for the husband and 100k for the wife.

So we are left with a total of 300k of net SE income.

Should (or could) the 300k be split between the husband and wife in total between pension and pension compensation?

Should (or could) the 200k for the husband be split between pension and pension comp and the 100k for the wife separately?

Other approaches?

Obviously, if we work with the total 300k it enables more flexibility.

All of the above ok, if spelled out in partnership agreement?

It may also depend on if they file jointly or separately.

Thanks.

[J Simmons]

If I understand the question correctly, the pension cost ought to be allocated as a partnership expense and thus reduce the H's and W's share of profits proportionately regardless of the amounts of the pension contribution that may be allocated to them. I think you'd follow the partnership agreement to the extent it does not call for the allocation against partnership income not be, per partner, the amount that such partner receives in pension contribution allocation.