Definition of Compensation. Compensation includes wages, salary, commissions, bonuses, and tips, but does not include income from interest, dividends, or other earnings or profits from property, or amounts not included in your taxable income. It also includes your earned income if you are self-employed (reduced by deductible Xxxxx plan contributions and one-half of your self-employment taxes) and taxable alimony. The IRS treats as compensation any amount properly shown on your Form W-2 as “wages, tips, and other compensation” reduced by the amount shown on that form as distributions from nonqualified plans.
Appears in 14 contracts
Samples: Traditional Ira Adoption Agreement, Traditional Ira Adoption Agreement, Traditional Ira Adoption Agreement
