Qualified Plan Design: Defining Form W-2 Wages

All possible compensation items have been described below, but only those compensation items allowed by your Plan should be used for Plan purposes. Please refer to your Plan Adoption Agreement for a detailed list of additional compensation exclusions selected in your Plan. (see "EXCLUDED COMPENSATION").

Items included in Form W-2 Plan wages:

  • Wages
  • Salaries
  • Fee for professional services
  • Commissions on sales
  • Commissions on insurance premiums
  • Bonuses
  • Tips, but exclude non-cash tips and cash tips less than $20 per month
  • Amounts paid under accident and health plans (which are includible in income)
  • Value of non-qualified stock option included in income in the year in which granted

Items excluded from Form W-2 Plan wages:

  • Amounts realized from sale or exchange of stock acquired under qualified stock option