davis bacon contributions

I was asked a basic question but not working with Davis Bacon contributions I was not sure:  Are Davis Bacon contributions considered employer contributions to a plan and if so, would they count towards the 25% deductible employer contribution limit?  I assume they count towards an employee's 415 limit.

Thank  you

They do indeed on both counts - I've had plans where the D-B amounts caused not only a 415 excess, but also have seen a 404 excess the IRS caught on audit.

To confirm Bri's comment, yes they are an Employer Contribution in all respects.

Great.  Thanks everyone

Don't forget they are subject to testing, the same as any other employer contributions. Sometimes folks think that there is a pass on the testing because they are classified as Davis Bacon / Prevailing Wage. 

Most of the plans I see that allow those types of contributions specifically exclude HCE from that type of contribution. 

We've seen clients exceed that limit and run a carryforward balance deductions, or others pay the excess as W2 and currently deduct rather than contribute. This is where you put your consulting hat on as there are other (welfare) benefits where D-B prevailing wage fringe amounts can be directed. We've also done CB to cover a floor of like the first 5% of pay of D-B PW. One of the complicating issues there is if someone's PW is less than the 5% credit they still get the 5%.