Christine Roberts Posted March 1, 2002 Posted March 1, 2002 A profit sharing/401(k) plan elects to meet the nondiscretionary safe harbor contribution rules. Does the safe harbor contribution satisfy the requirement that the PS plan make regularly recurring contributions? In other words, if the employer also elects the discretionary PS contribution feature, must that separate type of PS contribution also be regularly recurring?
Mike Preston Posted March 1, 2002 Posted March 1, 2002 I have been led to believe by the IRS that the requirement is not only satisifed by the safe harbor, but that the IRS considers contributions to the 401(k) portion in satisfaction of that requirement.
Christine Roberts Posted March 1, 2002 Author Posted March 1, 2002 Mike, thanks for the surpassingly prompt reply. This is helpful info.
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