404 Compensation

[steve45]

Plan excludes bonus from compensation and there are post entry compensation for two participants (as per plan document). 

How should I determine total 404 (25% Deduction Limit) compensation for any plan year? excluding bonus & post entry compensation or only consider gross compensation

 

Thanks in advance.

 

 

[Bri]

total, regardless of the plan's definition for allocation purposes.  404 cross-references 415(c)(3) for the definition of compensation.  (And you get to use full year pay even for partial-year participants.)