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Mike is correct. In a private medical practice, it's common for the total compensation package to be production based. Pay specific attention to Mike's #2 response.

If it's terminating, you also want to check Plan B to make sure it allows distributions in-kind or loan rollovers. Many pre-approved plans limit distributions to cash only; the loan note that gets assigned is considered an in-kind distribution and direct rollover to Plan A. This is especially true if Plan B will file for a DL after termination and you have to support the in-kind loan rollover as a permissible form of distribution. Most loan policies also result in an automatic default upon termination of employment or termination of the plan, so I would confirm the policy is consistent with what you're trying to do as well.

I'm not sure the fix is anything other than using different descriptions. I could easily create a spreadsheet that puts everything in the right "buckets" and doesn't run afoul of the deemed CODA rules. In general, there is nothing wrong with compensation levels being set such that there is a recognition of employer costs specific to that individual. You have a wrinkle with the 3 non-shareholders but that is just another variable (what's three more when you are leaving things to a spreadsheet?). Comments to your questions: 1) No. 2) I'll bet they aren't actually funding those amounts. I'll bet the plan sponsor is properly funding the amounts and you are confusing that with the fact that their W-2 is affected by the direct cost associated with that funding. 3) What does whether they are HCE's or NHCE's have to do with this discussion?

in addition, without having run other software except Relius, I suspect none of them would indicate a key employee if you entered exactly 1%. reminds me of years ago ... I had one case we ran a projected ADP test in early Nov. one individual owned exactly 5%, was deferring the max the projected comp was 110,000.12 which would make them an HCE the following year I told them no matter what happens to make sure the comp did not go over 110,000, even if it means the person found 12 cents mysteriously sitting on his desk when he came in to work in the morning.

Think about it. There are no statue of limitations on either late amendments or murder. Though I am sure you are a Saint.