Safe Harbor Excess Match Amount

[Guest HHR]

Plan Year ended 3/31/02. Safe Harbor Match is standard amount (100% of 3%, 50% of 3-5%) based upon payroll period wages. Total SH Match to HCE for plan year exceeded allowable maximum of $6,800 based on $170,000 maximum payroll for plan year. How should this be corrected?

[Tom Poje]

for a full explanation, see Q & A #121, under the Q & A Section, Correcting Plan Defects

Basically, remove excess amount (plus earnings) and hold in suspense, reduce this years match