We are owners of a small retail business with a simple IRA plan for our 1 employee & 2 partners (self/wife). In 2011, my wife contributed $2,538 (5% of income). The company match on this was $1,550 (3%). This leaves an excess contribution of $1,034. Our employee withholds the same % & the excess over the match is reflected on his W2 as a reduction of his income by the total amount withheld. Since we are the owners we DO NOT receive a W2 but a K1. It looks like on the K1 only the employer match of $1,505 is entered as a deduction to ordinary business income. Can the additional non matched contribution ($1,034) be claimed as a deduction and how is this done on our 1040?