Leave Cashouts and Deferred Compensation. Leave cashouts shall be included in 415 Compensation, unless otherwise elected in Section 2.2 of this Amendment, if those amounts would have been included in the definition of 415 Compensation if they were paid prior to the participant's severance from employment, and the amounts are payment for unused accrued bona fide sick, vacation, or other leave, but only if the participant would have been able to use the leave if employment had continued. In addition, deferred compensation shall be included in 415 Compensation, unless otherwise elected in Section 2.2 of this Amendment, if the compensation would have been included in the definition of 415 Compensation if it had been paid prior to the participant's severance from employment, and the compensation is received pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid at the same time if the participant had continued in employment with the Employer and only to the extent that the payment is includible in the participant's gross income.
Leave Cashouts and Deferred Compensation. For Limitation Years beginning on or after July 1, 2007, and if elected by the Employer in the Adoption Agreement, the 415(c)(3) Compensation definition shall include an amount that is either (a) payment for unused accrued bona fide sick, vacation, or other leave, but only if the Employee would have been able to use the leave if employment had continued (“leave cashouts”), or (b) received by the Employee pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the Employee at the same time if the Employee had continued in employment with the Employer and only to the extent that the payment is includible in the Employee’s gross income (“deferred compensation”) and, provided further, that those amounts are paid by the later of 2 1/2 months after the Employee’s Severance from Employment or the end of the Limitation Year that includes the date of Severance from Employment and those amounts would have been included in the definition of Compensation if they were paid prior to the Employee’s Severance from Employment.
