M Norton Posted December 28, 2018 Posted December 28, 2018 Medical practice sponsors 401(k) plan. A nurse practitioner terminated employment in early December, and has not worked for the plan sponsor since termination. However, the NP will receive commissions on collections through the end of December. What is the impact on the retirement plan if the NP receives a paycheck (with employment taxes withheld) as of 12/31 even though the last day worked was several weeks prior to that? Thanks!
ETA Consulting LLC Posted December 30, 2018 Posted December 30, 2018 Not sure the details, but the plan's language should address post-severance compensation. Good Luck! CPC, QPA, QKA, TGPC, ERPA
hr for me Posted December 30, 2018 Posted December 30, 2018 are commission wages part of the plan defined eligible compensation for the deferral/match calculation? And agree I would look at post-severance compensation in the plan document too.... Has a distribution already happened?
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