AS TPA

What if the plan does not need the safe harbor match in order to satisfy the ADP Test but does need it in order to satisfy the ACP Test (safe harbor match + after-tax)?

Ok perfect. This is very helpful. Thanks.

After three years of having the previous plan in place has passed, does that tax credit then become available to that employer again with a new startup plan?

In regards to the tax credit for plan startup costs (which just recently increased to $5k) does anyone know how this tax credit works if an employer maxed out this credit on a startup plan, then terminated that plan and started up a new plan a year later? Upon establishing that second startup plan would the employer be eligible for that tax credit again on the new plan?

Thank you. I completely forgot that this was a S corp. That's what I get for trying to do too many things at once...

Sorry for the confusion. This is a Safe Harbor Basic MATCH that I was asking about. Everyone is deferring at least 3% so they are all receiving a SH MATCH of at least 3%.

I received a Schedule K-1 (form 1120S) for the owner and sole employee of a corporation. This K-1 includes no box 14a. It does however include box 17 code W, which has an amount of $50k. I'm waiting on a response from the client as to when exactly during the year he earned this W2 compensation of $50k as you normally shouldn't receive both K1 and W2 income. But at the risk of asking a dumb question, would this mean that the only compensation that would be taken into consideration for plan purposes would be the $50k in box 17W (plan’s definition of comp is W2)?

I have a plan that is top heavy and is also making a safe harbor match and new comparability profit sharing contribution for 2018. All participants are receiving a safe harbor match contribution that is equal to at least 3% of their compensation, which counts towards satisfying the top heavy minimum contribution. I know that if a participant is only receiving a safe harbor matching contribution that they are not treated as "benefiting" for purposes of the gateway test. But if those safe harbor matching contributions are being used to satisfy the top heavy minimum contribution requirement, does that change how the safe harbor matching contributions are treated for gateway purposes?