Discretionary Match on Bonus Deferrals

[Guest Troy S.]

Hi,

Have a question in regards to how a discretionary matching contribution feature can be applied to bonus deferrals. We have a client that allows participants to make bonus deferral elections separate of their 401(k) elections. They have a discretionary match definition. They include bonuses in the plan definition of compensation. Does the client have leeway (i.e. discretion) in making matching contributions on the bonus deferrals? They seem to think they do, but I would tend to disagree, since bonuses are included in definition of comp.

Thanks for any help!

[mming]

I would also think that matches must be made on bonus deferrals due to the definition of comp.