Fisher Posted July 20, 2009 Posted July 20, 2009 If an individual takes K-1 distributions from the S-Corp, no W-2 income, would he even be eligible to make an IRA contribution based on this income?
jevd Posted July 20, 2009 Posted July 20, 2009 Can't have your Kaye & Edith too. NO. S Corp Dividends etc Distribution from K-1 not considered earned Income. Must be on W-2 and pay FICA or use income to calculate S.E. Tax.to be considered earned income. The accountant shouold be able to determine what the individual's status is. I'm not an accountant. The IRS may raise an eyebrow if dividend income from S-Corp and w-2 earnings k-1 income etc. are not appropriate for the type of business etc. Did the individual "Work" in the business or is he/she a silent investor type? JEVD Making the complex understandable.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now