k man Posted November 12, 2001 Report Share Posted November 12, 2001 I have read conflicting items as to the proper definition of compensation for determining the match in a SIMPLE plan. Is it the 401(a)(17) definition or something else? Link to comment Share on other sites More sharing options...
R. Butler Posted November 12, 2001 Report Share Posted November 12, 2001 For SIMPLE IRA's compensation is defined in 6051(a)(3). Basically it is compensation subject to withholding under 3401(a). Compensation does include salary deferrals under the plan. If employer uses a nonelective contribution the 401(a)(17) limit does apply. If the employer uses the match 401(a) (17) does not apply. Link to comment Share on other sites More sharing options...
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