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Guest DIGMYDOG
Posted

Company that has a 401(k) plan that does not exlude union employees. Can the contribution made to the union retirement plan count toward all or part of the 3% non-elective contribution if we were to amend the plan to a safe harbor 401(k) Plan?

Posted

More detail, please. What are the specs on the "contribution made to the union" plan? 100% vested? Used as a base in an integrated allocation? Is it made to a DC plan or a DB plan?

Guest DIGMYDOG
Posted

Thanks for responding...

The union plan is a DB plan. The contribution is 100% vested. The DB plan is not integrated. They contribute $0.70 per hour. The highest paid employee gets $26.50 per hour. The lowest is $19.33 per hour. $0.70 per hour is contributed regardless of their hourly rate.

Posted

I haven't researched this completely, but my understanding is that the contribution to the DB plan, even though it is 100% vested, can not count towards the 3% 401(k) Safe Harbor contribution.

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