Exclude Bonus Pay from the Definition of Compensation Exclude Bonus Pay from the Definition of Compensation

Exclude Bonus Pay from the Definition of Compensation

In a DC plan you can exclude bonus pay or any other special pay in Section A.16 – “Other Adjustments” for each applicable contribution source. Safe Harbor or Elective Deferral Compensation Exclusions can be detailed in A.16a.vii. – “Other Adjustments”. When the exclusion applies to only Safe Harbor or Elective Deferrals you can specify in the open text field as to which compensation source the exclusion applies.

NOTE: The definition of Plan Compensation in A.16 for Elective Deferrals/Voluntary Contributions will apply for purposes of safe harbor contributions unless otherwise noted in the document/checklist.