Compensation Exclusions, etc.

[ratherbereading]

Considering gross compensation for plan purposes is Box1 on the W2 + deferrals + section 125 + bonus + commission.  What about spousal travel and group term life? Are those also included in gross compensation? 

[Nate S]

that depends upon the actual definition of compensation per the Plan Document, 415, W-2, or 3401(a); and if fringe benefits are excluded.  BTW, what is spousal travel and how is it paid, as an expense reimbursement or payroll income?

[ratherbereading]

13 hours ago, Nate S said:

that depends upon the actual definition of compensation per the Plan Document, 415, W-2, or 3401(a); and if fringe benefits are excluded.  BTW, what is spousal travel and how is it paid, as an expense reimbursement or payroll income?

The compensation in the document is W-2.  Spousal travel in an expense reimbursement (apparently it is $$ paid when your spouse travels with you for business reasons).  Document is silent on fringe benefits-- doesn't include or exclude.  Thanks!! 

[Nate S]

The group term life is added to W-2 compensation for Plan purposes.  W-2 also normally includes fringe benefits so if the document doesn't exclude them then they're in.  However, the spousal travel reimbursement doesn't strike me as something to add on as a fringe since it's not initially taxable to the participant; the Sponsor would have to know the level at which it became deductible to the participant to start counting it for Plan purposes, and personal taxes are no business of the employer.

[ratherbereading]

Thank you, Nate