Using permitted disparity in a Safe Harbor 401(k) Plan

[katieinny]

The ER is making a 3% Safe Harbor contribution to the eligible employees. In addition, he will make an integrated contribution above and beyond the safe harbor contribution, perhaps in the 5% range. Must a portion of the additional contribution be allocated across the board, or can it be allocated only to those in excess of the wage base?

[KJohnson]

You cannot consider the 3% Safe Habor NEC in your integrated profit sharing plan formula.

The additional contribution must be allocated "across the board" based on your integrated formula.