Compensation definition in SIMPLE

[rfahey]

WHat is the definition of compensation for calculating SIMPLE dererrals in a SIMPLE IRA PLan ?

Does it exclude Section 125 cafeteria contributions ?

ADP payroll service is advising clients that compensation should not include Section 125 plan contributions.

THanks.

[QDROphile]

IRC section 408(p)(6).

Are you asking how to apply an election to defer a of a percentge of compensation? That is really a deeper communication issue than a question of definition of compensation, and 401(k) plans have the same communiction issue.

[PensionPro]

Comp excludes 125 deferrals.