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414(h)(2) and definition of compensation

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Reviewing a takeover plan, and found what seems to me to be a bizarre (and inapplicable) provision.

This is a PRIVATE college - non-governmental in every way. The adoption agreement defines, for faculty only, compensation as including "Employee contributions described in Code Section 414(h)(2) that are treated as Employer contributions."

This wasn't a mistakenly checked "box" but was specifically drafted into the compensation definition. As I read 414(h)(2), I don't see how it can possibly be applicable in this situation. Am I missing something obvious here? 

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I agree with you, Belgarath. Has to be a mistake, but harmless. Perhaps a form document from someone who works on both governmental and nongovernmental plans. I guess you could also have a situation where an entity changes status during plan year, e.g. a consolidation of a private school with a public charter. But this would be very rare and I think you're right, it's just a mistake in your circumstance.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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