Dougsbpc Posted September 13, 2019 Share Posted September 13, 2019 Is there ever a disadvantage in having a safe harbor match pan based on compensation from the date of entry? Thanks. Link to comment Share on other sites More sharing options...
Madison71 Posted September 13, 2019 Share Posted September 13, 2019 My thought is if it was top-heavy, then compensation would need to be based on the entire year IF there is any additional employer contribution. Otherwise, you are fine as to date of entry and I can't think of any other disadvantage. Of course, SH match also doesn't count for gateway if you have new comparability, but you didn't ask that question. Link to comment Share on other sites More sharing options...
Larry Starr Posted September 13, 2019 Share Posted September 13, 2019 1 hour ago, Dougsbpc said: Is there ever a disadvantage in having a safe harbor match pan based on compensation from the date of entry? Thanks. Short answer: Disadvantage? No. Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com Link to comment Share on other sites More sharing options...
austin3515 Posted September 16, 2019 Share Posted September 16, 2019 Well there is one practical disadvantage. If you're the one calculating it, your client needs to provide you additional information. So I suppose it is more work for you and more work for your client. But if you're goal is to do what's best for your client then that wouldn't be a disadvantage at all! It will save them enough to make it worth the extra 5 minutes of work. Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
Bri Posted September 17, 2019 Share Posted September 17, 2019 And if you're the participant, of course you'd rather get 4% of the full year's pay! Link to comment Share on other sites More sharing options...
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