What kinds of pay are included in the definition of “total compensation”?
The definition of “total compensation” depends on your 401(k) plan’s rules. When a plan is established, the employer can choose to include all compensation — overtime, bonuses, commissions, etc. — or only a portion, such as base pay, when determining total compensation. The specifics for your company’s plan can most likely be found in the Summary Plan Description document (if you can’t find yours, your human resources representative should have a copy on hand).
