Owners of PC get w2 income and pass-through k1 income

[ombskid]

5 docs have always gotten w2 income from the PC. This year they are also getting pass through income on a k-1. Is this passthrough income treated as earned income for profit sharing plan calculations?

[Bird]

If it's an S corp, and it sounds like it is, then the answer is no.  

[CuseFan]

If still PC, then either it's a C or S corp and a C wouldn't be issuing K1's so sounds like an S, and the Bird tweets correctly - not on W-2, not compensation/earned income.

Simple rule of thumb question - are you paying FICA/Medicare taxes or SECA self-employed version on the income? If yes, OK for comp/earned income but if not, then SOL.

[Larry Starr]

33 minutes ago, Bird said:

If it's an S corp, and it sounds like it is, then the answer is no.  

As usual, not enough information provided in the original posting......

Bird is asking (as am I) WHY is there a K-1?  Is it a K-1 as part of an 1120S?  As noted by the others, S distributions don't count.

[ombskid]

Of course it's an S Corp.I shudda checked that first. Thanks all.