Welcome to Just Answers! Thank you for giving me the opportunity to assist you! I will do my best to help!
Thank you for asking for me. I am glad to see Lane tried to assist you. However, I don't think that your question has been answered. You asked which of the amounts was the number to match. Was it the salary? Or the salary minus the medical
? And what was the authority that you could cite?
The definition of compensation
for SIMPLE (and most other retirement plans
) is found in Treasury Reg 1.415-2(d)(2). It states that "Medical or disability benefits
as described in IRC §104(a)(3), 105(a) and 105(h), but ONLY TO THE EXTENT THAT THESE AMOUNTS ARE INCLUDED IN the gross income
of the employee (Treas Reg. 1.415-2(d)(2)(iii). Gross Income is defined under IRC §3121, and specifically state that wages do NOT include income
that would be excluded under a §125 plan (which is what a pre-tax
medical plan is).
So, your answer is you match the SALARY OR WAGES MINUS the MEDICAL INSURANCE. Your match must be dollar for dollar. Your citations are above.
Thanks! I hope this answers your questions! If you have any more, please feel free to ask!