steve45 Posted November 26, 2021 Posted November 26, 2021 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 Posted November 26, 2021 Posted November 26, 2021 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.)
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