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To expand on and emphasize what Mike said... If this is a sole proprietor, or effectively a one-man partnership of some sort, you (someone) needs to subtract the contributions from the net income before contributions to determine compensation for plan purposes. I'd say it is very likely that that is closer to $100,000 for the owner than the $146K shown (unless the $146K has already been reduced by the assumed contribution...I'm skeptical about that and in any event it's not that simple or direct). setting aside that issue, the math/formulas in the 4 tier spreadsheet are ok up to the point of the subtotal. After that, things break down, to be polite. Actually the comp to comp allocation following the subtotal is accurate, but based on a number that appears to be random, and the "TOTAL CONT" is accurate as far as the math goes, although it is not in fact the max nor the total desired. Going from that number (4600 for the employee) to "Amount allocated" (2080 for the employee) is...well, it's just wrong. I take some pride in figuring out why people do things wrong so I can explain it and help them understand, but I'd need some of what they are smoking to have a chance of doing so.

Yes, as long as you're not decreasing anyone's safe harbor benefit. But you'll lose top-heavy exemption by having separate eligibility requirements.

Separately I was told to look here, and see that it is moved to 'long-term actions' on the Agenda.