coleboy Posted September 10, 2018 Posted September 10, 2018 It's Monday and my brain isn't working today. Basic admin 101 question. Plan compensation is is based on when participant enters plan. For the purposes of allocating a profit share contribution, does one use compensation based on the entire plan year or the one from when the participant enters the plan?
Bill Presson Posted September 10, 2018 Posted September 10, 2018 Entirely depends on the definition in the plan document. Ebplans 1 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
BG5150 Posted September 10, 2018 Posted September 10, 2018 You must ALLOCATE according to the comp definition in the plan for the particular money type you are considering. However, you may be able to TEST the contribution using any compensation that satisfies 414(s). Ebplans 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Tom Poje Posted September 10, 2018 Posted September 10, 2018 in addition, if the plan is top heavy then at the minimum it's 3% of total comp
Larry Starr Posted September 10, 2018 Posted September 10, 2018 For what it's worth, we NEVER use comp from entry date and never have in 40 years! Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com
Mike Preston Posted September 11, 2018 Posted September 11, 2018 If gateway is a big issue then comp from entry date can save a lot of dough.
coleboy Posted September 13, 2018 Author Posted September 13, 2018 I have never used in either, Larry, until I started working for this company.
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