Guest nahe3 Posted August 20, 1998 Report Share Posted August 20, 1998 Hi, I work for a small non-profit which will provide some severance pay based on years of work, etc. to employees laid off due to a funding termination. Can the employees ask the employer to contribute part of their final check for severance pay or for vacation pay to their 403b account. The severance pay is taxable and I believe is considered compensation under federal law. Thanks! Link to comment Share on other sites More sharing options...
david shipp Posted August 20, 1998 Report Share Posted August 20, 1998 The IRS has indicated at seminars (i.e informally) that severance pay as you describe it was "earned" in prior years and thus cannot be taken into account as includible compensation for the current year. Link to comment Share on other sites More sharing options...
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