Guest ebs24502 Posted September 5, 2006 Posted September 5, 2006 A plan offers employees $300 per month. They may use this towards benefits (insurance) or else they may use as deferrals. Is this okay?
JanetM Posted September 6, 2006 Posted September 6, 2006 As long as you have a plan they can put it into that allows CODA. JanetM CPA, MBA
401(k)guru Posted September 6, 2006 Posted September 6, 2006 A plan offers employees $300 per month. They may use this towards benefits (insurance) or else they may use as deferrals. Is this okay? In order to be considered an elective deferral there must be a cash option. Based on your description it sounds like this would bot be considered an elective 401(k) contribution.
jmor99 Posted September 13, 2006 Posted September 13, 2006 Based on your limited description, this sounds like it might be a "flex credit" plan. It could be you've missed something in the SPD (per 401-kguru's post). Take a closer look at the SPD (and the plan document if necessary).
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