Back wages / Post Severance Comp

[austin3515]

PArticipatn termed in 2018.  Settlement for backwages was reach recently.  Is it eligible compensation?  Well outide the 415 post severance comp window but the interesting twist here of course is that theoretically these wages should have been paid in 2018 which presiumably the employer is admitting by agreeing to the backwage settlement in the first place.  I figure someone must have written an article on this at some point.

[EBECatty]

See 1.415(c)-2(g)(8):

(8) Back pay. Payments awarded by an administrative agency or court or pursuant to a bona fide agreement by an employer to compensate an employee for lost wages are compensation within the meaning of section 415(c)(3) for the limitation year to which the back pay relates, but only to the extent such payments represent wages and compensation that would otherwise be included in compensation under this section.