From an LLP to a PC

I have a plan that during 2017 had 2 partners. One partner retired midyear.  The plan then went from being an LLC to a PC. The remaining partner received a Schedule K1 and a W2 for 2017. Not sure if I should combine the 2 for the SH calculation, or just use his W2.  The retired partner is just getting a K1.

Thanks in advance!

Your facts are a bit murky, but it sounds like the business formerly operated through the LLC taxed as a partnership was incorporated contemporaneous with the retirement of one of the owners, and the non-retiring owner received a W-2 for his compensation after incorporating.  If so, does the new entity have a different EIN and did the new entity adopt the Plan before the end of 2017?  If it did, you combine the K-1 and W-2 amounts.  If it did not, then I don't see any way to include the W-2 amount.  

jpod, yes the new entity has a different EIN and the plan was restated to reflect the  change prior to the end of 2017.  I meant to say they went from LLP to a PC.

It's still a bit "murky" (I like that description!).

You needed to have BOTH entities be adopters of the plan in 2017.  It you restated the plan in 2017 for the new entity and did not have the old LLP also be an adopted, I think you have a problem because you effectively terminated the  plan of the LLP at that amendment point.

Now you need to figure out what problems that has caused since you amended a SH plan midyear with an effective termination.  Not something I want to try to figure out, so maybe others who have had this problem before might want to chime in.