Mrs V Posted July 23, 2017 Share Posted July 23, 2017 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. Link to comment Share on other sites More sharing options...
david rigby Posted July 23, 2017 Share Posted July 23, 2017 it depends on plan provisions. check the summary plan description. hr for me 1 I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice. Link to comment Share on other sites More sharing options...
Tom Poje Posted July 24, 2017 Share Posted July 24, 2017 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: compensation paid prior to your becoming a Participant will be excluded Christmas bonuses are excluded Link to comment Share on other sites More sharing options...
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