Deferrals on Limited Segments of pay

[rcline46]

Can an employer limit administratively what pay is used for deferrals? That is, can the sponsor say that deferrals are not permitted on overtime, bonus pay, sick or vacation pay for time not taken or other segments?

Pay for TESTING is not limited in the document. In fact testing is on total pay.

Searching on RIA Checkpoint turns this up in the Pamela Purdue / Qualified Pension and Profit Sharing Plans which points to a regulation under 401(a)(4), but I am looking for any other reference.

Thanks all.

[Peanut Butter Man]

What definition of comp is the plan using for deferrals?

[rcline46]

The definition of comp in the plan is for testing purposes. Deferrals are computed on compensation as defined in the Salary Deferral Agreement. The SDA excludes certain pieces of taxable pay.

[BG5150]

It sounds like there is a conflict between the SDA and the plan document (or, rather, the adoption agreement).

I would say the plan docs win over the SDA.