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Safe Harbor Formula?


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Traditional DB formula of [52.5% (AMC) + 12.5% (AMC-CC)] x Part/25, fractional accrual Partic. / Total Partic.

Does this formula satisfy the requirements for a designed based safe harbor?

 

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While it is later still on a Friday afternoon, I don't think that you have to go with 35 years for the prorata step-rate formula to be safe harbor.  I still think the formula you originally described ought to be a safe-harbor formula under the 401(a)(4) regulations for defined benefit plans.

Always check with your actuary first!

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