Commission included in the Definition of Compensation for Simple IRA Plan

Submitted by Julie Brangenberg on Thu, 2015-07-16 19:10

Company just implemented a commission arrangement with salespeople in addition to salary. Are commissions included in the definition of compensation/wages for Simple IRA deferrals and matching?



Submitted by Alan - IRA critic on Thu, 2015-07-16 21:37

I believe they are. The definition of compensation for SIMPLE IRA purposes is copied below, and all remuneration should be interpreted as going beyond basic salary:

(a) Wages For purposes of this chapter, the term “wages” means all remuneration (other than fees paid to a public official) for services performed by an employee for his employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash

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