Avoiding Retirement Plan Compensation Errors
The amount your company can contribute to your retirement plan and deduct for federal income-tax purposes generally depends on the amount of compensation you pay employees. Using an incorrect definition of compensation in your retirement plan can lead to costly operational failures that can affect your plan’s qualified status.
To help plan sponsors, the IRS’s website provides five tips for avoiding compensation-related plan failures:
If you have any questions or need assistance about retirement plan compensation, don’t hesitate to call Jerry Smith.