Search the Community
Showing results for tags 'cross tested'.
-
We have a 401k plan that covers several companies part of a controlled group. The plan is not top heavy and is not a 401k Safe Harbor. All employees of all companies are eligible for 401k and match, but PS component excludes one classification of employees (which is mostly HCE’s). The PS contribution is allocated on the grouping method. Because most of the non-excludables are HCE, it handily passes 410b. May one of the companies make no profit sharing contribution for it’s employees as long as 410b and the general tests under 401a4 passes? Reason for my question is, I was running projections and forgot to allocate a PS to one of the companies and yet, all my testing showed PASS. I believe the gateway test is not including that missing company because they didn’t receive a 401a benefit, which I think is correct, but it just seems too good to be true that I could not benefit one whole company. (While they are deferring and receiving a match.)
-
Hello! I have two queries, hope you guys can help me out. 1. If a participant has only deferral in plan, does he/she eligible for gateway minimum (No SHNE or TH minimum) ? 2. Which contribution will satisfy or cover gateway minimum (plan has no SHNE) Employer match/ SH Match? Thanks!
-
Cross Tested Plan, 3% SH non, Top Heavy, Semi Entry at 4/1 and 10/1 I have an employee with a legitimate participating compensation of 163.01. Participant was eligible 4/1 and terminated 4/5. Employee is entitled to 3% safe harbor and then a 2% profit sharing for the year. So the Gateway 414(s) compensation would show 163.01 with a 401a allocation of 8.15. So I need to check to make sure the employee is receiving at least 3% compensation on full year comp for top heavy status. Employee need 516.80 additional funds to receive top heavy minimum. Full year comp was 17,498.33. So here is the rub and the question. The benefit percentage of the employee in question would be like 300% plus based on the 524.95 401(a) total and compensation of 163.01. Would you leave it this way? Or do something different? On this plan, there are generally 2 to 3 employees that come in mid year and need a top heavy minimum. Where everyone else would show a benefit percentage of 5%, the 2 or 3 might show as 5.8%. Gateway then passes, and then I go to the next steps of making sure the other test pass. I just haven't seen a legit participating comp scenario skew the percentage this wildly. Thanks
- 3 replies
-
- cross tested
- top heavy
-
(and 1 more)
Tagged with:
-
I have a straight profit sharing only plan where the prior TPA used the Accrued to Date method for cross testing. I don't see where Relius offers that method. If it does, where do I code it?
-
What is the Gateway Minimum for the NHCEs in the following scenario? HCE is receiving the Safe Harbor Match (capped at 4%) and a 10% Profit Sharing Allocation. Assume NHCEs did not receive any SHM because did not defer any 401k. Also assume 401(a)(4) testing is passed with as little as a 3% PS allocation to the NHCEs. Is the Gateway Minimum additional allocation requirement 0.34% (3%PS + 0.34%GW = 3.34% * 3 = 10% PS allocation to HCE)? OR Is the Gateway Minimum additional allocation requirement 1.67% (3%PS + 1.67% GW = 4.67% * 3 = 14% total SHM+PS allocation to HCE)?
- 6 replies
-
- gateway
- cross tested
-
(and 1 more)
Tagged with: