Webcast Recording: My Plan has Excluded Comp – Now What??!!
Presented by: Ellen E. Moll, APA, CPC, QPA, QKA, Executive Plan Consultant at Premier Retirement Plan Services
Original presentation date: Thursday,February 13, 2020
Duration: 50 minutes
CPE credits: 1.00 NIPA CPE; 1.00 ERPA CPE
It's common for plan sponsors to want to exclude bonuses, overtime pay, or some odd fringe benefit (that only a few individuals even receive) from their plan’s definition of compensation. After all, the bonus is an extra gift – why should theya have to pay a Profit Sharing Contribution on top of it? Or maybe they want the bonus to be a surprise on the last day of the year and don’t want to worry about getting special deferral elections. Plan documents are usually designed with a place to select compensation exclusions, and they may even provide a “write-in” space for that odd fringe benefit. While sponsors are able to exclude compensation for plan purposes, the TPA is left to determine if the exclusion blows nondiscrimination testing! This NIPA webcast presented by Ellen Moll will cover:
- What compensation is considered a "safe harbor" definition under IRC §414(s)
- How to prove a non-safe harbor compensation definition is nondiscriminatory under IRC §414(s)
- How to satisfy nondiscrimination testing if the IRC §414(s) compensation is discriminatory, and
- Examples of common problems that arise
At the end of the webcast recording, you will need to take and pass a 10-question True/False quiz in order to earn CPE credits. You will receive a Certification of Completion through your profile in NIPA's Learning Center.
If you would like ERPA credits for completing this course, please contact NIPA HQ via nipa@nipa.org with your PTIN and a copy of your Certification of Completion.