Effective January 1, 1984, payments your employer makes to a profit-sharing or stock bonus plan are wages if:
You have the choice of receiving cash instead;
The payments and the amounts are not included in your gross income because of section 402(a)(8) of the IRC; and
One of the following conditions exists:
The payments are made under a qualified cash or deferred arrangement; or
The payments are made under section 401(k)(2) of the IRC.
The payments are counted as wages at the time the distributions are paid to the trust.