Limitation Compensation definition
Limitation Compensation. For purposes of Code Section 415, Limitation Compensation shall be compensation as determined for purposes of (select one):
(1) Code Section 415 Safe-Harbor as defined in Section 3.9.1(H)(i) of basic plan document #03. [ ] (2) the "Wages, Tips and Other Compensation" Box on Form W-2. [X] (3) Code Section 3401(a) Federal Income Tax Withholding.
Limitation Compensation means Compensation, as defined in either (i), (ii) or (iii) below, as specified in the Adoption Agreement:
(i) Code Section 415 Safe-Harbor Compensation For an Employee other than a Self-Employed Individual, the Employee's earned income, wages, salaries, and fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of Employment (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan (as described in Reg. 1.62-2(c)) and excluding the following:
(1) Employer contributions to a plan of deferred compensation which are not includible in the Employee's gross income for the taxable year in which contributed, or contributions under a "simplified employee pension" plan (within the meaning of Code Section 408(k)) to the extent such contributions are deductible by the Employee, or any distributions from a plan of deferred compensation;
(2) amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or other property) held by the Employee either becomes freely "transferable" or is no longer subject to a "substantial risk of forfeiture" (both quoted terms within the meaning of Code Section 83(a));
Limitation Compensation means the total of regular, overtime, bonus, and other cash compensation paid or made available to the Employee during the Plan Year for services rendered to the Employer during the Plan Year, but not including Pre-Tax Contributions made under this Plan and each other cash-or-deferred profit sharing plan maintained by the Employer (or by any Affiliate), but excluding the items listed in Treasury Regulations Section 1.415(c)-2(c) (relating to deferred compensation, stock options, and proceeds from the sale of certain securities). “Limitation Compensation” shall include elective amounts that are not includible in the gross income of the Participant by reason of Code Section 132(f)(4).
Examples of Limitation Compensation in a sentence
The effect of this election is that an Employee (who is not a 5% owner at any time during the determination year or the look-back year) with 415 Limitation Compensation in excess of $80,000 (as adjusted) for the look-back year (as defined in Section 1.50 of the Base Plan Document) is a Highly Compensated Employee only if the Employee was in the top-paid group for the look-back year.
Limitation Compensation shall mean all of each Participant's (check one): [ X ] (A) Wages, Tips and Other Compensation as Reported on Form W-2.
If, as provided in the Adoption Agreement, a calendar year data election is made, the calendar year beginning with or within the look-back year is treated as the Employer’s look-back year for purposes of determining whether an Employee is a Highly Compensated Employee on account of the Employee’s 415 Limitation Compensation for a look-back year under Section 414(q)(1)(B).
Highly Compensated Employee means any Employee who: (1) was a 5-percent owner at any time during the determination year or the look-back year, or (2) for the look-back year had 415 Limitation Compensation from the Employer in excess of $80,000 (as indexed) and, unless selected otherwise in the Adoption Agreement, was in the top-paid group for the look-back year.
Such estimated 415 Limitation Compensation shall be uniformly determined for all Participants similarly situated.
More Definitions of Limitation Compensation
Limitation Compensation means wages within the meaning of Section 3401(a) of the Code and all other payments of remuneration to an Employee by an Employer (in the course of the Employer's trade or business) for which the Employer is required to furnish the Employee a written statement under Sections 6041(d), 6051(a)(3) and 6052 of the Code, but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Section 3401(a)(2) of the Code); provided, however, that the Limitation Compensation of an Employee taken into account under the Plan for any Plan Year shall not exceed $150,000 (as adjusted to take into account any cost-of-living increases authorized pursuant to Section 401(a)(17)(B) of the Code).
Limitation Compensation means wages, salaries, and fees for professional services and other amounts received for personal service actually rendered in the course of employment with the Employer and all Affiliates, plus amounts which are contributed pursuant to a salary reduction agreement and which are not includible in the gross income of the Participant under Code ss.ss.125, 132(f)(4), 402(e)(3), 402(h), 408(p)(2)(A)(i) and 457. "Limitation Compensation" does not include:
Limitation Compensation means a Participant’s Earned Income, wages, salaries, fees for professional services and other amounts received for personal services actually rendered in the course of employment with the Employer maintaining the Plan (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses and fringe benefits and reimbursements of other expense allowances under a nonaccountable plan) and excluding the following:
Limitation Compensation is defined as wages as defined in Code Section 3401(a) and all other payments of compensation to an Employee by the Employer (in the course of the Employer's trade or business) for which the Employer is required to furnish the Employee a written statement under Sections 6041(d) and 6051(a)(3) of the Code. Compensation must be determined without regard to any rules under Section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Section 3401(a)(2)).
Limitation Compensation. For purposes of Code Section 415, Limitation Compensation shall be compensation as determined for purposes of (select one):
Limitation Compensation means Compensation, as defined in either (i), (ii) or (iii) below, as specified in the Adoption Agreement:
Limitation Compensation means, for a given Participant, ----------------------- for a given period of time, the amount(s) which must be reported in the "wages, tips, other compensation" box on the Form(s) W-2 provided to the Participant by the Employer. After December 31, 1997, Limitation Compensation shall be the sum of (a) the amount(s) which must be reported in the "wages, tips, other compensation" box on the Form(s) W-2 provided to the Par ticipant by the Employer and (b) the Participant's elective deferrals under sections 125, 402(e)(3), 402(h)(1)(B), and 403(b)