Safe harbor plan and 410(b) test

[alexa]

I have a 401(k) plan with a 3% nonelective safe harbor

Employer is also allocating an additional employer profit sharing contribution.

Relius 410(B) test shows a terminee who gets the safe harbor but not the additional profit sharign as benefiting

Is this corrrect?

Are there possible 401(a) (4) requirements?

[Mike Preston]

Yes it is correct. Yes there are potential additional a4 requirements. If, when those that Relius is treating as benefitting are counted as not benefitting the group benefitting does not satisfy 410(B), then you must add back enough of those to satisfy 410(B). If, when you do that, you end up with a two-tier benefit structure, you must general test. If you pass the general test, all is well. If not, you must correct a failed general test.

[alexa]

So I will need tp contact Relius; this sounds like a system bug to me

It is only 1 terminee and they easily pas even if he is considered "not benefiting"

[Mike Preston]

Since it is correct, as far as 410(B) goes, why do you think it sounds like a bug?

[Guest merlin]

Alexa, take a look at your 410b testing screen in the lower right corner. It sound like you've selected the option to treat the people getting the minimum as benefitting, which takes the plan out of the safe harbor (the a4 safe harbor, not the ADP safe harbor). If you select the "not benefitting" option Relius will do the coverage test with the t/h minimum people as 0's. If you still pass 410b you're OK. If not you'll have to do the a4 general test as Mike suggested. The good news is that you get to use the t/h minimum in the a4 test.