K-1 (1065) with IRA box checked

[abs96]

I have a K-1 where I1 and I2 show that it is for a retirement plan "IRA/SEP/KEOGH"

When I try to enter it into ProSeries, it comes up with an error message saying "Retirement Plan checkbox is checked indicating that the K-1 is for a retirement plan and should not be entered on an individual's return." It says I should either uncheck the box or remove the form.

Is there somewhere else I need to report this?

[abctax55 · Accepted solution]

No.   IRA activity isn't reported on the individual's return until it is distributed via F 1099-R.

[sjrcpa]

The IRA may have to file a 990-T if the K-1 has unrelated business taxable income.

And client throws it back to the IRA Trustee to prepare.

[abs96]

Thanks.

[abctax55]

YVW.... the issuance of those is sorta new (last five years?) and is very confusing - especially to clients and especially when they show up AFTER the F 1040 has already been filed <w>.

[abs96]

Thanks.