Compensaton Definition for Safe Harbor Non-Elective Plan

[Bruddah Kimo]

Can a Safe-Harbor Non-Elective 401k plan (3% of comp) use a definition of comp that excludes bonuses? Or must the plan use a safe harbor definition of compensation even if it passes the Compensation Ratio Test? Just want to be sure, I've seen conflicting info on this.....thank you!

[John Feldt ERPA CPC QPA]

If that definition passes 414(s) and your document allows you to do so. Be sure to look in the plan document, which spells that out, probably something in the 401(k) /(m) section, something like Safe Harbor Compensation "the Employer must apply a nondiscriminatory definition of Compensation..."

edit: typo