earned income and 401(k) deferrals

[Draper55]

hope this has not been asked exactly before. my question is

two fold:

1). for purposes of applying limits under 404 is earned income always inclusive of

the 401k salary deferral(i.e., we do not reduce for the deferral for

25% limit, 6% overlook, 31% combined etc.).

2.)is the treatment identical for 415. in other words for compensation

purposes, is the 100% of three year average also applied to earned income

ignoring salary deferrals but with regard to other qualified plan contributions?

this client was way above the 401(a)(17) limit in 2007 and 2008 the first two years of

the plan, but that is not the case for 2009. it is a one person k/db combo.

[Blinky the 3-eyed Fish]

Think of it this way. If instead of a sole prop it was a corporation, what would the answers be? Then apply that to the fact that it's a sole prop.

(Hint: you don't reduce the comp for the deferrals in 1 or 2.)