K-1 ?

[Penman2006]

I am looking at a 2008 K-1. Line 14 has two separate entries: Code A = 200,000 and Code C = 450,000.

Per the instructions, Code A is net earnings from self-employement and Code C is gross non-farm income.

What do I use to calculate the pension contribution?

[Andy the Actuary]

How does the plan define Compensation?

[Guest Sieve]

Net earnings from self-employment (to the extent it relates to the business of the employer sponsoring the plan).

[ScottR]

I am looking at a 2008 K-1. Line 14 has two separate entries: Code A = 200,000 and Code C = 450,000.

Per the instructions, Code A is net earnings from self-employement and Code C is gross non-farm income.

What do I use to calculate the pension contribution?

Here's what I think:

- Start with amount on line 14A

- Subtract Section 179 deduction (line 12)

- Subtract any partnership expense the partner paid personally and deducted on Schedule E.

- Subtract oil and gas depletion, if applicable.

- Subtract partner's deduction for 1/2 SE tax

- Subtract partner's deduction for pension/SEP contributions

= Result is partner's Earned Income. May add back salary deferrals to get plan compensation, if the plan so provides.

... Scott

[PensionPro]

I have a similar question. If k-1 shows line 14 with amounts for code A and code B, what amount do I use as my starting point to calculate plan compensation? Thanks.