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Alternate Definitions of Comp (Retirement Plans, too)


Guest bobolink
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Guest bobolink

Reg 1.414(s)-1(b)(2) provides that .."an employer may change its definition of compensation for a subsequent determination period ..." So, an employer could use "simplified" compensation under 1.415©-2(d)(2) for 2008 nondiscrimination testing of welfare and retirement plans even though "regular" 415 comp has been used in the past.

But, could an employer use "simplified" compensation for testing one of its h&w plans, and regular for all other plan testing?

What say you?

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I don't think there's any consistency requirement that would mandate that the same defintion of compensation be used for different plans of the same employer.

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I don't think there's any consistency requirement that would mandate that the same defintion of compensation be used for different plans of the same employer.

Oh that there were such a requirement--pension simplification would be thy name!

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

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