Sunny Gupta Posted December 12, 2020 Share Posted December 12, 2020 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? Link to comment Share on other sites More sharing options...
C. B. Zeller Posted December 15, 2020 Share Posted December 15, 2020 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.corey@pppc.co Link to comment Share on other sites More sharing options...
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