Overtime Excluded in 401K Deduction Calculations

[Mrs V]

My federal employer excludes overtime when calculating the amount that's deducted from my pay for 401-K plan contributions. They use my base salary. Is that correct? I thought it should be calculated on gross wages.

[david rigby]

it depends on plan provisions.  check the summary plan description.

[Tom Poje]

for example, the summary of plan description might read something like this (In this example Christmas bonus was excluded, I would expect your summary to indicate overtime is excluded.

Adjustments to compensation. The following adjustments to compensation will be made for purposes of salary deferrals:

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 compensation paid prior to your becoming a Participant will be excluded

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 Christmas bonuses are excluded