comp net deferrals... for partners

[AlbanyConsultant]

Just took over a plan where the definition of compensation is W-2 without adding back salary deferrals. So for the regular employees, that's easy enough - just use Box 1 from the W-2.

The partners, though...the basic plan document says that it is their Earned Income, which is defined as

...Net earnings shall be determined without regard to items not included in gross income and the deductions allocable to such items but with regard to the deduction allowed to the taxpayer by Code section 164(f). Net earnings shall be reduced by contributions to a qualified plan to the extent deductible under Code section 404.

I'm not sure if this really gives me the authority to subtract the partner's deferrals from what the K-1 calculation yields. Of course I want to, because that makes sense, but is that how this reads? And no, the K-1 amounts aren't over $255K.

Thanks for your input...