Originally Posted by
744ButtonPusher
i guess that will be in the language details. Retro payments are almost always taxable in the current year but if any pensionable amounts are allowed, the IRS requires that those funds be allocated based on the years for which they’re they based on. If no pensionable amounts for 20,21,22 then it’s a non issue
The language is already there. It’s just a signing bonus. Company PRAP contributions will be paid on the 2023 amount. The other 20xx numbers are there just for computational purposes—it’s not “retro” pay in the IRS sense. You may do whatever you want with it as far as the PRAP/VEBA goes, but it will be subject to the limits in the year that it is paid, which will likely be 2023.