K-1 compensation for calculating match/profit sharing?

[Lori H]

2 member LLC.

Schedule K-1 income subtotal was $409349.

I believe you deduct Sec 179 which was $5946

and then deduct deferrals which was $22000

is there another calculation to be made before you arrive at earnings for plan purposes?

I believe both partners have earned well in excess of 415 limit, but just want to confirm.

[Below Ground]

If I am reading this right, I do not believe you deduct deferrals to determine 415 Compensation. Or do you mean employee deferrals (not deferrals of the partners) were $22,000. In that case you would. There is a worksheet in Publication 560, I believe, that you need to look at since there was several changes made above what you noted.

[Bird]

You do not deduct deferrals. You do deduct the 179 expenses, unreimbursed partnership expenses the partner paid individually and deducted from Schedule E, and 1/2 of the self-employment tax, and profit sharing contributions for employees (but this should already be factored in on the K-1...we often get "profits before any contributions" and have to provide this), and the profit sharing contribution for the partner(s).

If each partner was at $409K, then you'd likely be well over $250K.