A frequent and complex challenge for retirement plan advisors can be properly defining compensation for plan eligibility and contribution purposes, including income reported on a Schedule K‑1. Improper reporting of K-1 income may result in compliance errors, contribution miscalculations, and/or plan disqualification. What is K-1 Compensation? Owners of partnerships and LLCs taxed as partnerships typically… [keep reading…]
Tag: partnership
New York State’s Pass Through Entity (PTE) Tax
A controversial provision of the Tax Cuts and Jobs Act (TCJA) limited the itemized deductions related to state taxes (real property taxes plus state & local income taxes). Since its enactment, individual taxpayers have been limited to a maximum deduction of $10,000 on their federal income tax return. A number of states responded by enacting… [keep reading…]