Maybe it\u2019s the Larry David in me or the fact that I never had a job where I got a bonus, but excluding bonus from the definition of compensation is more trouble than it\u2019s worth.<\/p>\n
While I understand that plan sponsors may want to exclude bonuses from the definition of compensation because they don\u2019t want to offer employer contributions on the bonus, I just think it\u2019s just a pain. Why? Excluding bonuses would take the compensation definition outisde of safe harbor Section 414(s) compensation, which would require testing to determine whether the definition discriminates in favor of highly compensated employees.<\/p>\n
While most testing I\u2019ve seen for compensation has passed, I just think excluding bonuises involved more work and just not worth it, to save a few dollars.<\/p>\n
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