shERPA Posted April 1, 2015 Share Posted April 1, 2015 Plan provides immediate eligibility for CODA and 12 month/21 statutory eligibility for SH match. Employee met the 12 months and entered the plan on 10/1 (calendar year plan). Plan does SH match per pay period. SH regs say that the SH much be made for all comp during the period in which an employee is eligible defer, which was all year. So does the employer have to go back and deposit the SH match for the first 9 months of the year prior to the employee being eligible for the SH match? Does your answer change if the plan does a true up of the match at year end? I carry stuff uphill for others who get all the glory. Link to comment Share on other sites More sharing options...
Jim Chad Posted April 1, 2015 Share Posted April 1, 2015 I am guessing the document will tell you "no", you don't match deferrals made while not eligible for SHMAC. Link to comment Share on other sites More sharing options...
Tom Poje Posted April 1, 2015 Share Posted April 1, 2015 This statement is not quite true"SH regs say that the SH much be made for all comp during the period in which an employee is eligible defer," the safe harbor rules may be applied only to those who have satisfied the max stat requirements. hence otherwise excludable ees, while eligible to defer, could be excluded from the safe harbor. you lose the "top heavy free" under those conditions in addition, 1.401(k)-3(b)(2) defines safe harbor comp 'could be limited to employee's period of participation' in this case the participant didn't participate in the match portion for the whole year. (plus you are matching per payroll) one of the issues with the match is that an HCE can't receive at a higher rate than an NHCE. If you weren't matching per payroll then you might have problems with this rule. if you match per payroll, the rate of match is looked at per payroll as well. Link to comment Share on other sites More sharing options...
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