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Showing results for tags 'sh match error'.
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A very small SH 401(k) plan has five eligible participants. Two are deferring, one HCE and one NHCE. Two other HCEs are not deferring, and one (now deceased) NHCE did not defer. In 2018 the plan sponsor made the SH match every pay period (by choice - not required). The NHCE who was deferring received a few dollars too much match as of the end of the year. The extra amount equals 0.07% of the NHCE's annual compensation. So there is what amounts to a miniscule profit sharing contribution made to one NHCE which causes the plan not to meet the exemption to the top heavy rules. What are the options for addressing this? Thanks!
