Compensation-403(b)

[Guest dietpepsi]

I have noticed that several 403(b) document providers allow for exclusions (bonuses, commissions, overtime, other) from compensation when calculating contributions. Should an alternative compensation test be completed when an alternative comp is being used in a 403(b) plan?

Thanks

[Guest dietpepsi]

Hello again. It occurred to me that perhaps you don't know what I mean by alternative compensation test. By alternative compensation test I am referring to 1.414(s)-1(d)(3) where it states ...an employer's highly compensated as a group for the determination period does not exceed by more than a de minimis amount the average percentage of total compensation included under the alternative definition for the employer's nonhighly compensated employees as a group.

For a 401(a) plan, we normally do a little test to make sure the amount is di minimus (2-3%). I was wondering if I should monitor this as well for 403(b) plans.

Thanks