gregburst Posted August 28, 2015 Posted August 28, 2015 If the plan document defines comp as gross W2, can the ADP test be run using net W2 (so that deferrals aren't included in comp)? Is this a discretionary option that can be decided each year, or does it have to be hardwired into the plan document?
Mike Preston Posted August 28, 2015 Posted August 28, 2015 Most docs have it as an option in a pre-approved plan. Yes, it must be authorized in the plan, even if it is done so indirectly with a provision that says something like: "ADP test may be run on any basis allowed by regulations."
Tom Poje Posted August 28, 2015 Posted August 28, 2015 it might be in the definition for 414(s) compensation, something like "Comp is any definition that will satisfy 414(s)..."
Recommended Posts
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 accountSign in
Already have an account? Sign in here.
Sign In Now