cdavis25 Posted July 19, 2019 Posted July 19, 2019 A client excludes bonus from compensation for deferral only. They include it for SH and PS. They use full 415 comp for 410(b) and 401(a)(4) testing and are passing. The 414(s) comp test is failing when excluding bonus from deferrals. Am I correct that really isn't an issue as long as they pass the general test on full 415 comp?
Mike Preston Posted July 19, 2019 Posted July 19, 2019 Compensation for deferral purposes need only be reasonable.
Tom Poje Posted July 19, 2019 Posted July 19, 2019 you could always run the ADP test using total comp
cdavis25 Posted July 19, 2019 Author Posted July 19, 2019 They are SH Tom, so no ADP test. Mike, are you saying this is more of a BRF issue to defer?
Mike Preston Posted July 19, 2019 Posted July 19, 2019 33 minutes ago, Tom Poje said: you could always run the ADP test using total comp Not if deferral comp is not reasonable.
Mike Preston Posted July 19, 2019 Posted July 19, 2019 23 minutes ago, cdavis25 said: They are SH Tom, so no ADP test. Mike, are you saying this is more of a BRF issue to defer? I would not word it that way.
Luke Bailey Posted July 22, 2019 Posted July 22, 2019 If this is a safe harbor plan comp has to comply with 414(s). Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
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