Comp Definition for Deferrals

[MarZDoates]

Plan excludes bonus and overtime from compensation for deferrals only.

Plan does not exclude any time of compensation for safe harbor match.

Don't we still have to make sure the comp for deferrals is not discriminatory?

Thanks.

[401king]

Bonuses and overtime are excluded from definition of comp for deferrals, or participants simply cannot defer from those types of earnings? I'm just not sure why a (Safe Harbor) Plan would exclude those items from deferral definition of compensation.

[MarZDoates]

The items are actually excluded from the definition of comp in the document. I think the sponsor is thinking it will reduce his match cost if the employee is not allowed to defer on those comp items.

[Bill Presson]

The items are actually excluded from the definition of comp in the document. I think the sponsor is thinking it will reduce his match cost if the employee is not allowed to defer on those comp items.

You still have to test.

I'm betting the reason is actually because it is easier on payroll to exclude those items and no one ever told them that it was a compliance issue.

[MarZDoates]

Thanks.