Another question related to severance pay

[jkharvey]

I understand that elective deferrals are not made from severance pay that is paid to an employee after the date of termination. My question is related to the 3% nonelective SH contribution. The Plan defines compensation as W-2 wages. The severance pay is included in W-2. Does the severance pay that is paid after the employee terminates count when determining the 3% SH contribution?

[WDIK]

If the plan definition of compensation for purposes of the safe harbor allocation does not exclude compensation attributable to severance pay after termination of employment, I would include it.