For a self‑employed individual or a partner in a partnership, compensation is equal to earned income from your company. For a sole proprietor, these amounts will be reported on your Schedule C. If you are a partner, this amount will be reported on your K-1.
Please note that if you are an S-Corp owner, your K-1 income does not factor into your compensation; only your W-2 wages are included. If you are a C-corp owner, your only compensation is your W-2 employee compensation.
If you have questions about your individual circumstances you should always consult your tax advisor. To learn more about compensation in your 401(k) plan, you can review your summary plan description (SPD), located in your Guideline dashboard as well.