No. The $100k of income passed through on the Schedule K-1 (Form 1120S) is not compensation. The contribution is based on the W-2-reported compensation. With $50k of W-2 compensation and a SEP plan contribution rate of 25% (the maximum rate permissible), the S corp must contribute $12,500 to this individual's SEP-IRA. The S corp takes the deduction for the $12,500 contribution on the S corp's tax return (Form 1120S).
