Drake Tax – 1065: Payments to Partners for Retirement Plan
Article #:10061
Last Updated: October 21, 2024
Enter payments the partnership made to partners for their IRA, Simplified Employee Pension (SEP), and SIMPLE IRA plans on screen K, item 13d, code R. Entries made in this field adjust amounts coming from other partnerships (K1P screen). Amounts from IRA, SIMPLE IRA, and SEP plans can be deducted by partners on their individual returns.
Note If a qualified plan is a defined benefit plan, a partner's distributive share of payments is determined in the same manner as his or her distributive share of partnership taxable income. For a defined benefit plan, attach to the Schedule K-1 for each partner a statement showing the amount of benefit accrued for the tax year. Use the SA link to specially allocate benefits to the partners as needed. See Drake Tax - 1065 - Partner Special Allocations for more information on special allocations.
See the 1065 Instructions for information on retirement plan deductions made on line 18 of the 1065 return (entered on the DED screen, if applicable).