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415(c)(3) definition of compensation


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Posted

If an employee receives cash for unused vacation is this "COMPENSATION" for purposes of 415©(3)? The regulations 1.415-2(d)(2) - states for "services ACTUALLY RENDERED" does this assume that if you worked to accrue the vacation that your employment was in fact the "service" that was rendered?

Posted

Yes. Plus, I am not sure that your distinction works in this case - isn't unused vacation paid because the employee did actually work instead of take the vaca?

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