IRS Issue Snapshot: Plan Compensation for Partnerships (IRC §401)

Calculation of plan compensation for partnerships that maintain qualified retirement plans under IRC §401 and SEP IRA plans under §408(k) discussed in an IRS issue snapshot released May 11. The IRS analyzes earned income and partner’s earned income. A partner’s earned income is in part determined through guaranteed payments and net earnings from self-employments, the IRS outlined. [IRS Issue Snapshot: Calculation of Plan Compensation for Partnerships]

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