Hello,
I need some counsel from the group -
I was employed for all of 2019 with my current company.
On Feb 2019: I received a lump sum bonus - 50K from my employer. I was NOT enrolled in my employers 401K and therefore no 401K contribution was made from my bonus.
On March 2019: I joined 401K plan.
Does the bonus of 50K in Feb count towards the "income eligible for 401K" for 2019 - given I enrolled in March?
Hear this! I don't expect that contribution will be backdated to the bonus check. But when I contribute 5% of my annual compensation to 401K in my fidelity401K system, it is 5% of "what"? --- is it the "total annual compensation including the bonus" or the "compensation received after the enrollment date"?
Please advise, and if there is a IRS bulletin where this is clearly articulated?
