Compensation

[PFranckowiak]

I have a SH nonelectve 401k plan that is considering allowing the participants to
sell part of their accrued vacation time to help pay for their medical insurance. Part of their medical insurance will also be deducted from their pay in 2016.

What options do I have for compensation definitions?

Thanks

Pat

[mphs77]

Medical insurance inside a 401(k) Plan? Or do you mean the Sponsor of the 401(k) Plan is considering to allow

employees to sell part of their accrued vacation time?

[PFranckowiak]

Yes - sell part of their accrued vacation time to pay for medical benefits. (Not in 401k plan)

What compesation is used for contribution purposes for safe Harbor nonelective contribution and other profit sharing contribution?

I assume they cannot defer from it as the only way they can "sell" it is to help pay for their medical benefits.

They will divide what they sell into the 52 weeks of pay. So if someone sells a week, $520. Then $10 would go to each pay period.

P