401questions Posted June 28, 2024 Posted June 28, 2024 Feel like I remember this coming up before but now I can't find anything. Bonuses not excluded comp. Employer pays a bonus, NOT off-cycle (i.e., paid with a regular paycheck, so EE just gets a larger paycheck for that pay period). Say Employee A has a $100/paycheck deferral election. Employer should just withhold "Normal" election correct? Since it is being paid in a regular paycheck, there would not be an increase in deferrals withheld?
Bri Posted June 28, 2024 Posted June 28, 2024 That sounds appropriate, but really comes down to the Plan Administrator interpreting the document and its standard operating procedures conforming to Its interpretation. So if the bonus were a separate paycheck, he'd have gotten $200 total that week, I suppose. Belgarath and Luke Bailey 2
Belgarath Posted July 1, 2024 Posted July 1, 2024 Many pre-approved documents (which is about all I see these days) have a specific Administrative Procedures addendum that specifically deals with questions like this - Relius does, for example. Take heed of Bri's comment. Luke Bailey 1
Peter Gulia Posted July 1, 2024 Posted July 1, 2024 When a plan-documents set includes, beyond the Adoption Agreement, a “Special Effective Dates”, an “Appendix” (or a few of them), an “Administrative Procedures”, and perhaps other differently labelled sections, which of them is treated as a part of “the” plan document? May a user decline to fill-in all or some of these parts without losing reliance on the IRS’s opinion letter? May a user change the text of all or some of these parts without losing reliance on the IRS’s opinion letter? Or if these extra parts must be parts of “the” plan document, why are these parts differently labelled and not a part of a whole Adoption Agreement? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
Belgarath Posted July 1, 2024 Posted July 1, 2024 Here's the wording on our document, FWIW... The following are optional administrative provisions. The Administrator may implement procedures that override any elections in this Section without a formal Plan amendment. In addition, modifications to these procedures will not affect an Employer's reliance on the Plan. Peter Gulia and Luke Bailey 1 1
Peter Gulia Posted July 1, 2024 Posted July 1, 2024 Thanks! Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com
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