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Spot Bonus Employee Reconition Awards Deferrals


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Guest IRISH79
Posted

Can an employee elect to defer a portion of an employee recognition award or other type of spot bonus under a 401(k) plan?

Posted

Depends on the plan document. Sometimes bonuses are completely excluded, sometimes they are treated as regular salary, and sometimes participants get a seperate election for bonuses.

Posted

Check the plan doc to see what compensation is eligible for deferral.

JanetM CPA, MBA

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