cpabsd Posted February 25, 2008 Report Posted February 25, 2008 This is probably quite simple. However, I need some help. Client is an LLC being taxed as a partnership. During 2007, the members all contributed to the 401K plan. These are voluntary deferred compensation. An employee would have box 1 of the W-2 reduced by that amount but would still pay SS and Fica on the deferred comp amount. The members are not employees. It does not seem right to increase the guranteed payments by the amount of deferred compensation. It also does not seem right that the full amount of deferred comp is a deduction to the partnership. Please help me here. Quote
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