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Do payments to a profit-sharing or stock bonus plan count as wages?
Effective January 1, 1984, payments your employer makes to a profit-sharing or stock bonus plan are wages if:
You have the choice of receiving cash instead;
The payments and the amounts are not included in your gross income because of section 402(a)(8) of the IRC; and
One of the following conditions exists:
The payments are made under a qualified cash or deferred arrangement; or
The payments are made under section 401(k)(2) of the IRC.
The payments are counted as wages at the time the distributions are paid to the trust.
Last Revised: March, 2001
- Pension and Retirement Payments
- Do supplemental retirement plan payments count as wages?
- Do payments under or to a tax-sheltered annuity plan count as wages?
- Do payments from a plan or system for sickness, retirement, etc. count as wages?
- Do payments from or to a tax-exempt annuity plan count as wages?
- Do amounts deferred under a nonqualified deferred compensation plan count as wages?
- Do payments made to a disabled former employee count as wages?
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