Safe Harbor 401(k)/Cross-tested PS
Posted 10 March 2003 - 09:23 AM
thanks for any help.
Posted 10 March 2003 - 10:24 AM
Posted 10 March 2003 - 10:50 AM
Posted 10 March 2003 - 11:17 AM
Posted 10 March 2003 - 11:55 AM
Posted 10 March 2003 - 12:18 PM
Like I had previously stated, the minimum gateway allocation is determined by taking into account all non-matching employer contributions and forfeitures thereon, for the plan year.
Forgive me, but I don't understand your previous comments, as their purpose seems, to me, to be irrelevant.
Posted 10 March 2003 - 12:19 PM
Posted 10 March 2003 - 12:34 PM
Posted 10 March 2003 - 12:35 PM
Posted 10 March 2005 - 12:33 PM
I have a top heavy non-safe harbor 401(k) plan with a match and a cross-tested employer contribution.
#1: Eligibility and entry for the 401(k), 401(m) and profit sharing is all the same, so all participants are in each portion of the plan.
Eligibility to receive the profit sharing is 1,000 hours and last day employment.
I have a participant who defers and receives a match that is equal to 3% of his gross pay for the plan year. He does not work 1,000 hours, however, and is therefore, not eligible for the profit sharing contribution. The plan provides that the match can be used to satisfy the top heavy, so he receives his entire top heavy minimum in the 401(m) plan.
Is this participant required to receive the gateway?
#2: Eligibility and entry for 401(k) and 401(m) is immediate. Eligibility for PS is 1 year, age 21 with 2 entry dates.
Participant is in 401(k)/401(m) but does not defer. Participant receives top heavy minimum. Because the participant is not eligible for the PS plan, I do not believe he needs to get the gateway. If he were also a PS participant and eligible only for the top heavy minimum, then I would give him the gateway. In a search, I saw a different answer given on this issue, but the discussion was over a year old so I would just like confirmation of my position.
Posted 10 March 2005 - 01:33 PM
the one exception is if the plan is broken into two parts for testing purposes - statutory includables and otherwise excludables.
a match is geberally not considered a nonelective contribution (because you have to 'elect' to defer to get the match) thus, if ee has satisfied top heavy via the match, it would appear ee would not have to get a minimum gateway.
my apologies for my very dry humor!