New Comp Plans

[Guest LBH]

I have a new comp plan which will hit the 15% deduct limit before allowing the owners to get to 415 limit.

I have two owners, owner one with very low compensation. Do I give owner one 25% and the max allowable with still passing cross testing to owner 2. (Probably about 19%.) or

Do both owners need to receive the same percentage?

If this question is unclear please let me know and I will explain in more detail.

Thanks!!!

[Tom Poje]

you have to follow terms of the document. in other words, if alloaction is comp to comp you cant simply give one owner 25% and another 19%.

however, if owners are in classes, then you could give different contribution rates to each owner.