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Floor Offset Plan

Sunny Gupta

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Floor Offset Plan is top heavy minimum of 5% Profit Sharing (PS) Highest HCE Allocation rate comes to 25.12 resulting PS testing Minimum Gateway will pass with total PS 7.50% (

PS 4.50% plus SHNE 3%)

But if I reduce the PS to owner to total 4.50% (PS 1.50% plus SHNE 3%), then highest HCE Allocation rate comes down to 24.92% and Minimum Gateway pass at Total 5% (PS 2% plus SHNE 3%). 

My question is do I have to offset in 5% or 4.5% for all participants in DB plan?

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What does the plan document say?

Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance.

Corey B. Zeller, MSEA, CPC, QPA, QKA
Preferred Pension Planning Corp.

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