Jump to content

Includible compensation - Sec. 457


Guest Jami

Recommended Posts

My question is related to what is "includible compensation" as referred to in the regulations at section 1.457-2(e)(2). Specifically, are tax-deferred amounts taken from a participants gross income for a defined benefit plan included for the includible compensation calculation?

Link to comment
Share on other sites

No. I.R.C. § 457(e)(5) and Treas. Reg. § 1.457-2(e)(2) define "includible compensation" for purposes of 457 plans to include only compensation which is includible in the employee's income (for tax purposes). Thus, amounts which are not includible in the participant's income (including amounts contributed to the 457 plan itself, as well as the contributions to defined benefit plans you mention) cannot be included in includible compensation.

---------------------------------------

Employee benefits legal resource site

Employee benefits legal resource site

The opinions of my postings are my own and do not necessarily represent my law firm's position, strategies, or opinions. The contents of my postings are offered for informational purposes only and should not be construed as legal advice. A visit to this board or an exchange of information through this board does not create an attorney-client relationship. You should consult directly with an attorney for individual advice regarding your particular situation. I am not your lawyer under any circumstances.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...