FAQ 163: Budget--Not reducing partner income by safe harbor contribution


The Partnership Budget worksheet under Reports/Studies and Proposals is not reducing the earned income by the staff portion in the safe harbor source, even though it appears the budget calculated the contribution.


Check the following:
1) Did you select to print the Safe Harbor Source both when you ran the budget calculations AND when you ran the Partnership budget report? You must be sure to select the safe harbor source in both the budget setup and the printing of the partnership budget worksheet.

2) In this case, there are also 2 coding problems.
a) Source 5 is coded with a Source Type of "EE Pre-Tax", so it was treated as a deferral. Change this to one of the safe harbor Source Types.
b) On the Benefit Limits (BENLIMIT) screen, the plan is coded as a Profit Sharing plan, rather than "3-Thrift or 401(k)".