khr Posted October 6, 2015 Posted October 6, 2015 I have a plan which excludes bonus wages from the definition of compensation. When running ADP/ACP testing, do I have to test using the compensation as described above or can I use the full year compensation? The client did not withhold 401k or give match on the bonus amounts.
BG5150 Posted October 6, 2015 Posted October 6, 2015 You can test on whatever compensation that is allwoed int he testing section of your plan documetn. Oftentimes, it'll be any comp that fits 414(s) hr for me 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Tom Poje Posted October 7, 2015 Posted October 7, 2015 to be a little more descriptive, you can't use comp less bonus unless it passes the compensation test, then it would be considered a comp that fits 414(s).
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