Artie M

Hate to beat a dead horse but I don't see it as easily as you guys do. Treas. Reg. s 1.415(c)-2(e)(3)(iv): "if they are paid after severance from employment with the employer maintaining the plan," The IRM conveniently omits that phrase. That highlighted language means (to me at least) that severance paid any time after severance from employment is not included in 415 comp even if it’s paid within the time period in (e)(3)(i) [2½ months/end of LY]. Otherwise, why is the underlined language in the Regulations?

Thanks for the link but I guess I am just dense. I don't see the authority for your statement. s 31.3401(a)-1(b)(4) states severance is in wages. (this reg also updated in 2007). Looking for the statement that says don't ever include severance in the 415 W-2 safe harbor definition.

The use of a January date in your example does give one pause.... I agree that if your plan provides that comp is based on the default rule in 415, severance should not be included whether it was paid pre- or post-termination of employment as that comp definition includes only amounts received for services actually rendered. (I didn't use quote marks as I have not busted out the books but I think that is right). This rule would not apply to NQDC, so timing seems relevant. However, I am not certain about your blanket statement that severance is never included when using the W-2 6041 definitions. I believe severance and NQDC are includible in W-2 compensation and are reportable, including for purposes of the 415 safe-harbor definitions. Can you provide authority for your blanket statement?