confused about compensation for determining benefits & top heavy

Hi

Checking a Combo plan CB/DC and came across the following:

CB definition of compensation is W-2 and includes all

DC definition of compensation is W-2 and includes all (section 125 as well - not deemed)

But

Under a separate addendum, DC excludes deemed 125 compensation in Compensation and 415 Compensation (language from the document).

So when I check for compensation in DC for allocating PS, Gateway, Top heavy and also for testing, how does the "deemed 125 compensation" language kick in.

So confused.

First thing - does your plan sponsor actually pay those types of wages such that you "need" to account for it?

If so, then you then will have to decide (if the plan doesn't do that for you) how 414s comp will be defined for your testing.  Sounds like it may not be allocation-eligible compensation, but could still need to be part of your testing compensation.

45 minutes ago, Bri said:

does your plan sponsor actually pay those types of wages

Exactly, that sort of issue occurs very infrequently in my experience.