Section 415 Compensation Definitions Section 415 Compensation Definitions

Section 415 Compensation Definitions

There are two types of 415 compensation available in the Cycle 3/Post PPA document (Section A.15a).

  1. Section 415 Compensation – this is the long version of 415 Compensation. Items specified in Treas. Reg. section 1.415(c)-2(b) and excluding all items listed in Treas. Reg. section 1.415(c)-2(c).  Plans that have “Section 415 Safe Harbor Option” elected in the PPA checklist (A.19a.iii) will map to this election in Cycle 3/Post PPA as they are the same version (long) of 415 Compensation.
  2. Section 415 Safe Harbor Option – A new option in the Cycle 3 Document. This is the simplified version of 415 Compensation. Items specified in Treas. Reg. section 1.415(c)-(d)(2).