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I would absolutely defer to the employer's definition. If the employer classifies it as a "bonus" then it should be excluded. Make the employer decide if this should be treated as a "bonus" or regular salary. Don't let the employer push you into making the decision. Just my opinion...

I am winging this one but since no one has responded to I'll throw this out and let others shoot it full of holes if they disagree. I think you can but I'd set up the plan so that 1) The safe harbor used for the entire year is consistent. 2) You don't duplicate contributions - i.e. offset the Safe Harbor in the new plan by the SH provided in the MEP plan 3) Design the plan to avoid impermissible mid year changes.

Based on the questions you're asking, I think you need to speak to the plan's actuary to get an expert opinion on this particular case.

I can;t figure out why that's even an option. Anyone with the email can access the files. I strongly recommend you require the passwords to open. The email (and thus the key to vault since the email itself includes the credentials (aka their name)) is traveling unencrypted all over the place and can easily be snagged in transit. Maybe its ok for internal financil documents or soemthing, but definitely not for SS#'s and DOB's. I'll bet if you asked Sharefile they would say the same thing I am.

As usual, Luke Bailey is correct! I know of no reason that a 501(c )(3) cannot have a 403(b) plan. You might ask for a copy of their 501(c)(3) exemption letter if you have some reason to doubt the 990. Also, just for fun, I googled "Boys and Girls Club 403(b)" and at least a dozen of these showed up. PNJ

cpc0506, if it's a 501(c)(3) as reflected on its For 990, it can have a 403(b)

As usual, we have nowhere near enough information to answer thoroughly. The answer is not simple when dealing with a RE asset. While it can be a permissible investment (so long as we don't have a prohibited transaction involved, which I often see is the situation), it causes its own problems. For example, are there other employees in the plan? Is it participant directed or pooled? There can be BRF (benefits, rights and features) issues depending on whether all participants can buy into it or whether all participants are automatically part of it (as in a pooled trust). Then, you have the problem of annual valuation; expect to have to spend a significant amount of money every year to get professional appraisals that would stand up to an IRS audit (that means, not what 3 real estate agents think it might be worth). Also, if it is a really good investment, the client is turning what should be capital gain property into ordinary income property, which could be giving up a substantial tax benefit. Because the plan is not an active developer of real estate as a business, it should still be a passive investment. But depending on the "deal" with the developer, it can lead to potential UBTI, which I always tell clients that becomes their CPAs problem (not mine) since they will have to file TAXABLE income tax returns for the plan if there is enough UBTI. There are lots of reasons for NOT doing this; more reasons for NOT doing it than doing it.