| This definition of Compensation is generally used for allocating contributions. See item A.26 for the definition of Testing Compensation that is used applying plan limits and for testing purposes (e.g., Code section 415). The responses to questions regarding "Compensation" will have no effect on the definition "Testing Compensation". The response to this item will be used to select a definition of Compensation that will appear in Article 2. The checklist options and the corresponding language are as follows: W-2 "Compensation" means wages within the meaning of 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 Code sections 6041(d), 6051(a)(3), and 6052. Compensation must be determined without regard to any rules under Code 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 Code section 3401(a)(2)). For any Self-Employed Individual covered under the Plan, Compensation will mean Earned Income. .... Withholding "Compensation" means wages within the meaning of Code section 3401(a) for the purposes of income tax withholding at the source 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 Code section 3401(a)(2)). For any Self-Employed Individual covered under the Plan, Compensation will mean Earned Income. .... 415 Safe Harbor "Compensation" means only those items specified in Treas. Reg. section 1.415-2(d)(2)(i) and excluding all of those items listed in Treas. Reg. section 1.415-2(d)(3). For any Self-Employed Individual covered under the Plan, Compensation will mean Earned Income. .... The foregoing is only intended to be an illustration of how the response to this question will be used to build a document. The actual language that will appear in the document may vary from that illustrated above and the response to the checklist item may affect other parts of the document. You must carefully review the entire document after it is generated to ensure that the document accurately reflects the intended design. Compensation | 
