Integrated Profit Sharing Contribution Formula in addition to safe har

[Guest Gibson]

Does anyone know of a reason why a plan cannot have an integrated profit sharing contribution formula in addition to a 3% safe harbor contribution? Wht does it mean in Code Section 401(k)(12)(E)(ii) by "without regard to Code Section 401(l)? These seems to imply that as long as the 3% safe harbor meets the 401(k)(12) requirements, you can have additional contributions, but that the additional intergrated contribution cannot be considered in determining whether the safe harbor is met.

[Tom Poje]

I believe your interpretation is correct.

all the regs are saying is that you cant 'also' apply integration to the safe harbor contribution. there is no reason you can't make an additional contribution under whatever formula you desire. Many are going with a cross tested formula of some type.

remember, you can use the safe harbor in testing as well, but you can not impute disparity on that portion of it.

[Guest sampat]

Gibson,

We are in a similar situation with regard to Non-Resident employees. Can a Safe Harbor plan exclude H1-B visa employees and still qualify as the safe harbor plan? I want to set up a Safe Harbor plan but want to exclude a non-resident (i.e., non green Card) employee.