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Can a Participant Contribute Unused PTO to a Plan?
Plan Sponsor Council of America [PSCA] Link to more items from this source
[Guidance Overview]
Dec. 31, 2025

"If both the plan document and PTO policy allow the conversion of unused PTO to a 401(k) plan contribution, then the dollar value of the unused time may be contributed to the plan as long as the contribution does not unduly discriminate in favor of highly compensated employees (HCEs) and it does not exceed the contribution limits set by the IRS. The IRS approved of this process in Revenue Ruling 2009-31 and Revenue Ruling 2009-32."  MORE >>

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