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Prior-employer compensation in DC plan?


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Guest Carol L
Posted

Am I reading 1.414.(s)-1(d)(3)(vi) and 1.414(s)-1(f)(1) correctly - you cannot use a compensation definition that includes prior-employer compensation in a defined contribution plan, only a defined benefit plan? And if so, what's the logic?

Posted

The logic is they are 2 completely different types of qualified plans. It would be like saying, "My car requires gas to allow it to run, but my toaster does not.".

"What's in the big salad?"

"Big lettuce, big carrots, tomatoes like volleyballs."

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