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excluding overtime and bonus from compensation


dmb

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Governmental entity has 401a plan that excludes overtime and bonus from compensation. Is this subject to same non-discrimination testing as non-governmental entity with 401a plan?? Thanks.

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These exclusions are not subject to any nondiscrimination testing under the Internal Revenue Code.

Thanks for the response. So governmental entities are different than Church entities in this aspect?? It was my understanding that this compensation definition would be subject to testing if this was a church plan. I just want to be sure. Thanks again.

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