Excerpt: Few concepts are more confusing than how post severance compensation and post year end compensation actually work in a defined contribution plan. The concepts were introduced in the proposed section 415 regulations and included in the final 415 regulations released in April of 2007. This article will define and compare each term and apply the definitions to a plan with a participating employee terminating in December. Finally, the implications of each definition of compensation on employee elective deferral elections, employer contributions and reporting will be discussed.  MORE >>