Definition of Taxable Compensation


Taxable Compensation means, with respect to a Limitation Year, compensation as defined under Code Section 415(c)(3) and the Treasury Regulations thereunder. For more specificity, "Section 415 Compensation" shall mean compensation reported on Form W-2 within the meaning of Treasury Regulation SS1.415(c)-2(d)(4) increased by elective deferrals and other amounts required under Code Section 415(c)(3)(D) to be included in compensation except that amounts excluded from the employee's gross income under Code Section 132(f)(4) shall not be included in "Taxable Compensation" before the Limitation Year beginning on January 1, 2001. Effective January 1, 2008, an amount is not Taxable Compensation if it is paid after the Participant's severance from employment unless (i) the Participant is in qualified military service (as defined in Code Section 414(u)), (ii) the Participant is permanently and totally disabled (as defined in Code Section 22(e)(3)), or (iii) the amount is paid by the later of 2-1/2 months after severance from employment or the end of the year that includes the date of severance from employment and is described in Treasury Regulation SS1.415(c)-2(e)(3)(ii) or (iii). In no event shall a Participant's Taxable Compensation for a Limitation Year beginning on or after January 1, 1989 exceed the applicable Code Section 401(a)(17) Limit set forth in Section 1.6(b). ." (The emphasis is not included in the amendment.)

Examples of Taxable Compensation in a sentence

As defined in the NiSource Pension Plan, but disregarding the definition of Taxable Compensation and the limitations required by Code Section 401(a)(17), or any successor Section.
In the event of a Termination (as defined in Section 4(b) below) of the Executives employment with the Bank in anticipation of, or within twenty-four (24) months after, a Change of Control, the Bank shall be obligated, subject to the limitation contained in Section 2(d) below, to pay the Executive an amount equal to the Executives Average Annual Taxable Compensation (as defined in Section 4(e) below).
Effective April 1998, Section 2.43 of the Plan is amended to read in its entirety as follows: 2.43 "Taxable Compensation".
The definition of "Taxable Compensation" contained in Section 2.36 shall apply for Plan Years beginning on or after January 1, 1998.
Subtitle E--Simplification and Reform of Exclusions and Taxable Compensation SEC.