Partnership Solo 401k contributions

[JimS_1]

A partnership with two partners making self-employment income and no employees sets up a solo 401k plan for its partners.  In year 1, one partner decides to contribute 5,000 to the 401k as an employee deferral.  How is this $5k entered in Lacerte?  I have tried entering it in screen 22.1 Other Deductions to show up as Box 13R, then going to screen 29 to do the allocation to the one partner.  But this seems to create an expense on the M1, reducing line 1 of the M-1 which throws off the partner capital account in the balance sheet.  Since it's an employee deferral and not an employer contribution, it shouldn't affect the equity (i.e. the partner uses his partnership distribution to fund the 401k).   What am I missing?

[George4Tacks]

It is a distribution that is deferred. Two entries. 

[JimS_1]

Thank you for the response, but I don't understand how the distribution is deferred.  Can you explain further and what two entries I have to make?   Does the employee contribution show up in Box 13R?  I'm sorry I have to bother you to explain further.

[George4Tacks]

The $5,000 is also a distribution  (or guarantee payment) to the partner, as well as a deferral Box 13R as you entered. The distribution should then make your balance sheet back to where it should be. 

It has been a while since I have actually done this on a return, but this is my recall of the procedure.