Contribution to partner's retirement account in LLC

NG_ACC · ‎September 08, 2022

Hi,

Recently the two partner's in an LLC (partnership), for which I undertake the accounting, contributed some monies to their respective retirement accounts through the LLC. Since they are both also draw salaries, can this just be treated as a one time compensation expense? Or will this get a little more complicated?

Looking forward to getting some guidance on this!

Thanks in advance!

Rustler · ‎September 08, 2022

A partnership does not pay taxes, the partners do so on their share of the partnership profit or loss. A partner can not be on payroll if that is what you mean by "draw salaries"

I suggest you get with a tax accountant for this. Both the state and the feds have requirements for reporting retirement contributions depending on what type of retirement fund is being used.

View solution in original post

Rustler · ‎September 08, 2022

A partnership does not pay taxes, the partners do so on their share of the partnership profit or loss. A partner can not be on payroll if that is what you mean by "draw salaries"

I suggest you get with a tax accountant for this. Both the state and the feds have requirements for reporting retirement contributions depending on what type of retirement fund is being used.

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