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Lower Safe Harbor for a HCE?


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Guest Thornton
Posted

A medical group client of mine recently restated to a 401(K) safe harbor plan using the 3% safe harbor. One of their HCE's is the former owner of a business that they bought. In their contract with him, they agree to put $2,250 into the retirement plan for him. His comp is about $180,000. Can a prototype be plan be drafted to limit this one HCE to the contractual amount while the other HCE's receive the 3% safe harbor? Thanks.

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