MGOAdmin Posted August 5, 2013 Posted August 5, 2013 A participant in a 401(k) plan is receiving disability from his/her employer (paid for by his/her employer). Since this income is considered taxable, can a portion of these payments be contributed to the plan (assuming they do not violate the 415 limits) as employee deferrals?
GMK Posted August 5, 2013 Posted August 5, 2013 Unless the Plan Document says that disability payments are excluded from compensation, you should take deferrals from these payments, unless and until the participant elects 0% deferrals.
BG5150 Posted August 5, 2013 Posted August 5, 2013 is it the employer paying, or is it some sort of Third Party Sick Pay? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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