coleboy Posted March 25, 2018 Posted March 25, 2018 One of our clients is a LLC Partnership. One of the partners takes a draw each pay period from which 401k deferrals are taken but no match is done. It's now year-end. Is the match determined using the total draw income or will it be calculated based on her K-1 earnings?
401_noob Posted March 26, 2018 Posted March 26, 2018 Her K-1 earnings would be considered her net earnings from Self-employment. Her compensation to be used for retirement Plan purposes would be her earned income which has to be calculated. It is a rather circular calculation.
coleboy Posted March 26, 2018 Author Posted March 26, 2018 And her earned income is calculated from her k-1 earnings, correct?
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