Eligible Compensation

[Nassau]

If compensation is earned in the last pay period for the year but not paid until the next year, which year would this compensation fall under?

[masteff]

Most individuals are cash basis taxpayers, meaning they generally don't have constructive receipt until the amount is paid in the following year.

[Tom Poje]

it is possible that your document describes how to handle. For example, the final 415 regulation language supplied by Corbel had the following:

but you have to make this election - you can't pick and choose.

Administrative delay ("the first few weeks") rule. 415 Compensation for a limitation year shall not include, unless otherwise

elected in Section 2.2 of this Amendment, amounts earned but not paid during the limitation year solely because of the timing of

pay periods and pay dates. However, if elected in Section 2.2 of this Amendment, 415 Compensation for a limitation year shall

include amounts earned but not paid during the limitation year solely because of the timing of pay periods and pay dates, provided

the amounts are paid during the first few weeks of the next limitation year, the amounts are included on a uniform and consistent

basis with respect to all similarly situated participants, and no compensation is included in more than one limitation year.