Entering Profit Sharing Contributions & Cash Balance by Business on a 1065

[jknecht]

Hey Friends,

I don't do that many 1065s and I would a confirmation or answer, if I am wrong. 

For and Profit Sharing Contributions made by the Business - I put them under Employee Benefit Programs?  I believe so but would like confirmation.

Also for Cash Balance Contributions - those go under 'Retirement Plans' correct?

Thanks in advance and stay safe out there.

[sjrcpa · Accepted solution]

Contributions made for employees for both types go under retirement plans. Contributions for partners get separately stated on Schedules K and K-1.

[jknecht]

Thank you so much for confirming and clarifying.

[sjrcpa]

You're welcome.

[jknecht]

Hey, so there is a silent partner who shares in the profits, but not in the Cash Balance and pension items.  Is there a way to enter the Cash Balance K1 without having to change the partnership percentages since the silent partner does not get any of the CB?  

Please let me know since if I take it through as an 'Employee' Benefit' it does not show the money going to the partner for his Cash Balance.

Thoughts are welcome on this, as I am stuck, even after talking with a couple of folks that have done partnership returns for 30 years.

[sjrcpa]

You will need to do special allocations.

[jknecht]

Hello friend...is there a chance I could talk with you about this sometime in the next couple of days.  I want to make sure I am completely clean for this client.

[sjrcpa]

Post your question here.

[jknecht]

For the Employee Cash Balance - Recorded in Pensions on the Business Return
For the Owner, on his K1 13R
However, for the Owner to get Credit for it on his taxes, I am bringing it over to his personal as a Qualified Plan.  Correct?