Jump to content

403(b) Plan and excluded compensation

Recommended Posts


I inherited a 403(b) plan that provides for deferral, roth, matching and profit sharing contributions. I don't have a lot of 403(b) experience, but am learning. The plan definition of compensation excludes bonuses for allocation purposes. Profit sharing allocation is basically the same dollar amount to each participiant and matching contributions are a formula based on service and percentage of deferrals.

So, my maybe problem. The plan fails 414(s) testing. Plan passes ACP testing using gross compensation with no exclusions. Just for fun, I ran the 401(a)(4) general test on the profit sharing allocation and it passed using gross compensation.

Am I ok, or do I have to worry about 414(s) failure?

Thanks much for any help!

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...