Compensation - Schedule C and K1 combined?

1 hour ago, Hojo said:

Ran into an interesting scenario, a sole-prop is getting 1099 income and reporting on a Schedule C.  The person is also getting a 2.25% interest in an LLC and getting income reported on a K1.  While both are subject to SE, I don't believe that they can be combined under the sole prop to set up a new retirement plan.

Am I right, or can they be combined to forma  larger level of compensation?

The plan is adopted by an employer, and only the income from that employer can be counted.  So, if the sole prop adopts a plan, any income received from another employer, whether W-2 or K-1, doesn't count for the sole prop plan (assuming no 414(m), (n), or (o) issues - controlled entities).  It's highly unlikely that the 2% ownership will allow him to adopt a plan for that entity, so he has only his sole prop plan and only his sole prop income to take into consideration.