R. Butler
Mar 6 2001, 02:58 PM
Can a top heavy plan exclude bonuses from compensation?
Tom Poje
Mar 6 2001, 04:26 PM
a plan can exclude anything it wants from compensation, but top heavy is based on 415 comp, which includes all. so, based on your wording, no, a plan can not exclude bonuses from top heavy.
If you exclude bonuses for allocation purposes you will have to perform 414s comp testing.
AndyH
Mar 6 2001, 08:37 PM
... or general test it on gross wages.