I have the Schedule K-1 for both partners whose firm sponsors a 401k. There are no employer contributions for the 2006 plan year, just deferrals. Is the compensation for the partners the figure shown on Line 14A of the K-1, or do I need to subtract the 179 deduction (line 12) from that figure? Or is there another amount that should be used?

Thanks

Yes, you need to subtract Sec 179 expenses. To be precise, you should be asking for the 179 expense actually claimed on the partner's individual return since it could be different.

You're also supposed to subtract unreimbursed partnership expenses deducted by the individual taxpayer/partner on Schedule E.