Bonus Option
One of the original concepts of the cash or deferred arrangement was the ability to defer part, or all of a bonus. A bonus option provision provides for such deferrals. The language, from both standardized and nonstandardized GUST adoption agreements, is:
"Bonuses paid by the Employer are included in the definition of Compensation, and the Employer permits a Participant to amend their deferral election to the Plan, an amount not to exceed _______% or $________ of any bonus recieved by the Participant for any Plan Year."
To learn more, call 973-492-1880 or e-mail info@mhco.com.
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