Unused leave deposited into 401(k) plan

[alexa]

We have some employees who would like to have their unused sick/vacation leave deposited into their 401(k) plan.

If we do not have a use-it-or-lose-it policy , is there a problem?

We allow employees to carry-over some vacation and sick time. Also, I had read something about it being futile in certain states like CA which

has specific rules vesting al vacation pay?

Also, I understand since treated like an employer nonelective contribution is subject to benefits, rights & features testing?

For anyone who has implemented this, I'd like your input.We have 1/2 dozen bargainning units with varying leave policies.

Thanks

[QDROphile]

You need competent professional help on this one. The popular press is full of misinformation and the issues are subtle. It can be done in certain ways and under certain circumstances.