True or false: Post-severance compensation that meets the criteria for inclusion in 415 compensation must be included for plan purposes?

The correct response is that post-severance compensation that meets the criteria for inclusion in 415 compensation is generally not included for plan purposes in a 401(k) plan. This is based on the IRS rules, which specify that for compensation to be included under IRC Section 415, it typically should be compensation paid during the employee's period of active service. Post-severance payments may include items such as severance pay or payments for unused vacation or sick leave, but these are usually not considered eligible for inclusion in the calculation of contributions or benefits under a 401(k) plan since they are paid after the employment has ended.

It's important to note that while certain forms of post-severance compensation might be considered for specific tax purposes, they often do not count toward the contributions limits established under the 401(k) plan guidelines. Therefore, the assertion that such compensation must be included for plan purposes is not accurate, aligning with the definitions and stipulations provided in IRS regulations for qualified plans.