@john-pero wrote:
As a single member LLC your contributions to any IRA are non deductible in your business, but if the business checking makes the contribution then it is the same as if you first cut a Member Draw (equity) check to yourself and then sent the money to the IRA from your personal checking account. Any deduction allowable for the contribution happens not in your business schedule C but directly on the 1040.
If, instead, you are depositing money withdrawn from an IRA into your business (you said "income") that is simply the reverse as all personal money you put in is Member Contribution, also equity.
Thanks for the help! You are correct that the word "income" was confusing.
The process I took was I withdrew from my Business account and deposited it directly into my IRA.
I'm a sole proprietor. Usually when I withdraw funds to pay myself, I categorize that as Owners Pay & Personal Expenses. I assume that is the same as Member Draw (equity) but if not, what's the difference?
Ultimately - I'm just trying to figure out how to tag items in QBO so it's all correct at the end of the year. Is there no way to do this besides make a personal note to myself about how much I contribute to IRA annually and just remember to tell my Accountant at the end of the year? Or is there a way that QBO can do that work for me?
Thanks so much!
R
