BG5150 Posted January 16, 2017 Posted January 16, 2017 Plan's definition of comp is Simplified 415. No exclusions. Participant New York W2 report looks like this: Box 1 & 16: 48,500 = 50,000 gross (-) 500 sec. 125 (-) 1,000 401(k) Box 3 & 5: 49,500 = 50,000 gross (-) 500 sec. 125 (-) N/A 401(k) What is comp for plan purposes? I believe it should be 50,000, the gross. Admin here used the Box 3/5 result. Who's right? . QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
duckthing Posted January 16, 2017 Posted January 16, 2017 I'm with you on that one, absent anything special in the plan document. 415 should include 401(k) and 125 deferrals. K2retire 1
rocknrolls2 Posted January 30, 2017 Posted January 30, 2017 THE first, foremost and most important question is: what does the Plan say? That will control the "RIGHT" answer all the time. In all likelihood, I would suspect that $50,000 would be the right answer, but check the Plan document first.
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