austin3515 Posted March 8, 2019 Posted March 8, 2019 Plan A matches based on total gross pay, but for purposes of the match, they want to amend the Plan effective 1/1/2020 to exclude a lot of different compensation items. I assume I still have the flexibility to leave the plan on prior year testing, thus getting one more year of the "inflated" ACP results? In other words, I know in 2020 the ACP average for the NHCE's is going to take a hit, but I'll still be using the 2019 averages anyway. I suppose it's the flip side of a company discontinuing the match in 2019, forgetting to switch to current year testing, and then resuming the match in 2020 (a scenario we all agree means 100% refunds for the HCE's). Austin Powers, CPA, QPA, ERPA
C. B. Zeller Posted March 8, 2019 Posted March 8, 2019 As long as the same definition of compensation is used to calculate the 2019 NHCE ACP and the 2020 HCE ACP, then I agree. Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
austin3515 Posted March 8, 2019 Author Posted March 8, 2019 Yeah both would be based on "gross". Austin Powers, CPA, QPA, ERPA
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