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If there is a partnership they should be able to contribute to a SEP IRA but the system is denying it saying they is no self employment income but I have the K1 entered?

Can I put it on the retirement plan line on the 1065?
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3 Comments 3
Level 15

EDIT:  Oops, I missed that you said SEP, I read it too quickly.  Offhand, I don't remember how a SEP for a Partnership works.  Sorry.


Original comment:

Double check that you entered Box 14 of the K-1.

If Box 14 of the K-1 is blank, WHY is it blank?  If they were working for the Partnership, there should be a number in Box 14.

I didn't have a number in box 14, Should the same amount from box 1 be in box 14?  also when I put in the max contribution to the SEP IRA field on the adjustments to income where would I see the deduction on the 1040?

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Level 15

Agree with Bill about self-employment income.

For a partnership, the SEP needs to be set up at the partnership level. SEP contributions are based on the earned income of the partners. The SEP contribution goes on Line 13R of the K-1 and would end up as an adjustment to income on the 1040, just like it would for a Sch C person.