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The client has an existing 401(k) Safe Harbor Match plan where Key Employees participant. This plan has immediate entry. A Cash Balance plan and a Profit Sharing plan are added, where Key Employees also participate. The Cash Balance and Profit Sharing plans have a one-year wait for eligibility. Question #1......Since Key EEs participate in all three plans, I believe all three plans are part of the 416 required aggregation group. The 416 required aggregation group is Top Heavy. Does the 401(K) Safe Harbor plan lose the Safe Harbor Top Heavy exemption, and now have to provide 3% of Compensation to those that are in the 401(k) Safe Harbor plan but not yet in the CB or PS plans? I believe the answer is no. Question #2..... The CB and PS plans only benefit employees of specific job classifications (i.e. dentists, hygienists and technicians), and would satisfy the subjective reasonable classification test. If each plan individually passes the 70% coverage ratio, then I think I'm good and no need to do ABT. However, it's not looking like that's possible and I'm going to need to do ABT. If I need to do ABT, I believe I'm required to pull in the 401(k) deferrals and Safe Harbor Matching contributions. Is this correct? Question #3..... If the 401(k) Safe Harbor plan is pulled in for ABT, have I blown the Safe Harbor TH exemption and now have to provide a 3% of Compensation TH Minimum to everyone who is in the 401(k) Safe Harbor plan but not yet in the CB or PS plans? I think the answer is yes because now I'm using the deferrals and match for coverage. Side note.... If I include the deferrals and SH match I easily pass ABT, then also easily pass 401(a)(4).

Can SEP contributions be permissively aggregated for purposes of cross testing? I.e., Average Benefit Percentage Test, Average Benefit Test, and Gateway Minimum? The plan sponsor has both a SEP and a profit sharing plan in 2020 and the SEP is on an approved individually designed document. Thank you in advance.

Quick question on some confusion with the code. 1.410(b)-5(a-c) & (d)(2) When determining the actual benefit percentage, the code states that in (d)(2)"Employee contributions and employee-provided benefits disregarded" and clearly states "Therefore, employee contributions (...), and benefits derived from such contributions, are not taken into account in determining employee benefit percentages." However, literature, ASPPA presentations, and the Relius program include employee 401k contributions into the test. Applying to both contribution or benefit basis... Is this due to code 1.401(k)-1a(4)(ii) "Treatment of elective contributions as employer contributions"...? Basically saying that 401k & Roth are considered employer contributions in 1.410(b)-5 Just trying to get some clarification on the confusing wording Thank you

Do I need to use APR when calculating EBAR in my ABT as long as I am using 8.5 interest rate?