CLE401kGuy Posted April 10, 2019 Share Posted April 10, 2019 FACTS Plan is top heavy Plan entry has immediate entry for 401k, 1 yr and age 21 for profit sharing source Plan is safe harbor Any participant who entered the plan immediately for 401k but did not yet meet the eligibility requirements for profit sharing and is not terminated is subject to receiving top heavy minimum. Is the top heavy minimum given to these individuals as safe harbor or profit sharing? Thanks Link to comment Share on other sites More sharing options...
Tom Poje Posted April 10, 2019 Share Posted April 10, 2019 profit sharing. think of it this way. maybe not the best way to imagine it, but what the heck. you have 2 plans. plan 1 is safe harbor with a 1 year wait plan 2 is non safe harbor, no wait for deferrals. but since the folks are now participants they get the top heavy Link to comment Share on other sites More sharing options...
CLE401kGuy Posted April 10, 2019 Author Share Posted April 10, 2019 Perfect, thanks much Tom! Link to comment Share on other sites More sharing options...
Mr Bagwell Posted April 10, 2019 Share Posted April 10, 2019 Don't forget the ADP test.... although I highly doubt (and hope not) there are any HCEs in the OEE's group. Link to comment Share on other sites More sharing options...
justanotheradmin Posted April 10, 2019 Share Posted April 10, 2019 What's the eligibility for safe harbor? Does it follow the deferral eligibility and entry? or the Profit sharing? the fact pattern doesn't say. What kind of safe harbor? nonelective? match? We have some plans that have the safe harbor follow deferral eligibility, and others that have safe harbor eligibility the same as profit sharing. I'm a stranger on the internet. Nothing I write is tax or legal advice. I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say? Link to comment Share on other sites More sharing options...
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