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A surgical practice is an LLC taxed as a partnership. They have a DC plan in which they are maxing out contributions. Each Doctor can decide whether to be on call at the Emergency room of a local hospital and they receive a 1099 personally and report it as Sole Practitioner Earned Income. Can this income be included in the LLC Partnership income? If not, can they make a retirement plan contribution from this income separate from the partnership?

Posted

1099 income to the individual cannot be included for purposes of the partnership's plan, but, if there is no controlled group (between the partnership & the sole proprietor), then the 1099 income can be used as the basis for a separate plan for the sole proprietor.

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