Employer contributions are based on compensation for employer sponsored money purchase plans. What is not included in the definition of compensation?

Question

Quizplus · Accepted Answer

Compensation for employer sponsored money purchase plans is defined as wages, salaries, fees for professional services, and bargain elements of a nonqualified stock option. For these plans employer is required to make contributions based on contribution formulas that are then allocated as a percentage of compensation regardless of age. The plan is subject to minimum funding standard, whether or not the company made a profit.

Employer Contributions Are Based on Compensation for Employer Sponsored Money