Commissions paid later

[Guest JPIngold]

I have a client who set up the company's compensation structure to not pay commissions until the client paid the bill associated with the creation of the commission. Makes sense financially, but unfortunately, they didn't make such payments cease at termination of employment. As a result, I have commissions being paid a year after the person has left the company. Obviously, this is being paid more than 2-1/2 months after termination of employment. Is there anything I am forgetting/missing, or do I just ignore these payments altogether and exlude these people from all testing as they have performed NO service in the current year??? If they are paid within 2-1/2 months, but in the next plan year, I am thinking I have a contribution requirement if safe harbor.

[rcline46]

Go back and re-read your final 415 amendments. It will explain what to do.