C-corp is changing to a safe harbor plan, due to issues with testing. The goal is to use the enhanced testing method and avoid all testing requirements for ACP/ADP/top heavy .
Is it possible to use the following enhanced match:
Contrib/Match
1%-1%
2%-2%
3%-3%
4%-3.5%
5%-5%
My concern is the "step-up" from the 3.5% match to the 5% match,,,,,,,,
The goal is that employees that contrib 5% continue to receive a 5% match -- does that mean that 4% contrib would need to receive a 4% match?
Thanx,
SD