Barry Levy Posted June 25, 2021 Share Posted June 25, 2021 Safe K plans can contain provisions where HCEs are not allocated a Safe Harbor match. Are one or both of the following design allowed? 1) HCE Safe Harbor match is limited to $3,000 ($3,000 is an example) 2) Non-Shareholder HCEs match is limited to $3,000 Thank you Link to comment Share on other sites More sharing options...
Mike Preston Posted June 26, 2021 Share Posted June 26, 2021 4 hours ago, Barry Levy said: Safe K plans can contain provisions where HCEs are not allocated a Safe Harbor match. Are one or both of the following design allowed? 1) HCE Safe Harbor match is limited to $3,000 ($3,000 is an example) 2) Non-Shareholder HCEs match is limited to $3,000 Thank you Both are allowable. Luke Bailey 1 Link to comment Share on other sites More sharing options...
Barry Levy Posted June 28, 2021 Author Share Posted June 28, 2021 Thanks Mike. I hope all well. Link to comment Share on other sites More sharing options...
Mike Preston Posted June 28, 2021 Share Posted June 28, 2021 6 minutes ago, Barry Levy said: Thanks Mike. I hope all well. It is. Same to you! Link to comment Share on other sites More sharing options...
austin3515 Posted June 28, 2021 Share Posted June 28, 2021 Depending on the language in your pre-approved doc (if that is what you are using) that might not be workable). Ours is sufficiently flexible that it would be allowable such a cap to be implemented operationally, but someone mentioned at one point to treat it like a New Comp allocation and prepare a written certification as to the allocation. I'm not seeing a super-excellent field in our document to include such a cap. Maybe yours has a good field for it... Austin Powers, CPA, QPA, ERPA Link to comment Share on other sites More sharing options...
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