Compensation Quick Reference Chart
| Entity Type | Source of Income | Compensation for Plan* |
|---|---|---|
| Corporation | W-2 | W-2 |
| S-Corporation | W-2 + Schedule K-1 (Form 1120-S) | W-2 only. K-1 is disregarded. |
| Sole Proprietorship | Schedule C | Earned income (calculate)** |
| Partnership | Schedule K-1 (Form 1065) | Earned income (calculate)** |
*Capped at $275,000 per year (2018 limit. Indexed for inflation.)
**Net income, less certain adjustments, such as 1/2 of self-employment tax.
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