Are all taxable fringe benefits included in all base definitions of 415 compensation? True or False?

The statement that all taxable fringe benefits are included in all base definitions of Section 415 compensation is true. Section 415 of the Internal Revenue Code outlines the limits for contributions to retirement plans, including 401(k) plans. The definition of compensation for these purposes generally encompasses all forms of income, including taxable fringe benefits.

Taxable fringe benefits, such as certain automobile allowances, bonuses, and other types of non-cash compensation that are subject to income and payroll taxes, are typically included when calculating a participant's compensation for the purpose of determining contribution limits under the 401(k) plan rules. This comprehensive inclusion helps ensure that the compensation considered for retirement plan limits reflects the total earnings from which contributions might be derived, thus providing clarity in compliance with IRS regulations.

In contrast, some forms of compensation might not be included based on specific plan provisions or regulations. For instance, certain non-taxable fringe benefits or perks that do not qualify as income would not count towards this total. Therefore, while taxable fringe benefits form part of the overall compensation definition for Section 415, not all forms of compensation are included universally across various plan definitions.

This makes the assertion true, as it emphasizes that taxable fringe benefits contribute to the overall compensation that affects contribution limits