NG_ACC
Level 1
‎September 08, 2022 12:03 AM

Contribution to partner's retirement account in LLC

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!

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Rustler
Level 15
‎September 08, 2022 04:20 AM

Employees and payroll

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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