What is the comp to use?

[Jakyasar]

Hi

Need to revisit the following as I am now getting contradictory info from CPA. There are no exclusions per plan document.

From W-2

Box 1 $240,000

Box 6 $225,000

On the earnings summary

Gross Pay                      $225,000 - matches box 5

less deferral                  $  20,500

plus s-corp 2%             $  42,000 - medical premium

less catch up               $     6,500

Reported W-2              $240,000v - matches box 1

What to use as salary for pension purposes?

Thank you

[justanotheradmin]

We don't have enough information to know. 

what is the document's definition of compensation W-2 reportable compensation? 415 comp? 3401(a)?

What are the deferrals? pre-tax? Roth? 

Are there additional non-reported non-taxable amounts? Like HSA or section 125 dollars? Which generally aren't on the W-2 at all? 

And what are you going to use the compensation figure for, once you figure it out? A defined benefit accrual? safe harbor contribution? non-discrimination testing? different compensation definitions are often allowable depending on what it is being used for. 

[Jakyasar]

As I stated, nothing is excluded.

Definition is W-2.

Deferrals are pre-tax, that is why listed as "less"

No 125 listed.

To be used for cash balance, SH, PS and testing.

[Bri]

Sounds like 267 is the right answer.  

Either use Box 1 plus the salary deferrals

or use Box 5 plus the S-corp. medical

[CuseFan]

Agree, it appears the question is essentially do you include the taxable S-corp medical insurance premium add-in, and absent any specific exclusion I think you do.

[Jakyasar]

The CPA just said not to include, go figure.