Guest SAI Dave Posted November 15, 2002 Posted November 15, 2002 Can a person who is eligible to receive a Davis Bacon contribution opt not to take that contribution, but take it in cash as part of their prevailing wage?
IRC401 Posted November 16, 2002 Posted November 16, 2002 Employers ususally make "Davis-Bacon contributions" to plans because they do not want to pay cash to their employees. There are advantages to the employer, such as reduced employer FICA taxes, if the employer make contributions instead of cash payments. Therefore, the plan will not be written to permit a cash election.
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