Overtime rules/ 414(s)

[bmore1147]

Sorry if this is a newb question, but any help would be appreciated- given the new overtime rules going into effect I am concerned about some clients increased responsibilities if they don't exclude overtime

my question is - If you only exclude overtime for matching contributions, do you still run compensation test? If so- assuming you pass - do you use that for ACP? or is there flexibility? I really want to make sure of what happens if we are only making a compensation adjustment to matching contributions.

Thanks

[rcline46]

Any time you do not use one of the compensation safe harbor rules then you need to run the 414(s) test. It does not matter for what portion you exclude for - deferral, non-elective, match, QNEC, QMAC, safe harbor....

[bmore1147]

assuming you pass- do you use that for ACP- or is there flexibility

[rcline46]

your document controls what definition you may use for any of the tests. It may limit you to the one used to determine that piece of contribution, or it allow you to use any definition that satisfies 414(s).