401(k) Profit Sharing

[Jilliandiz]

I can't remember what the rules are behind the whole Gateway rules. Like when do you have to contribute the 1/3 of the HCE's, etc. I can't get it straight in my head. I'm working on a cross-tested plan, and the HCE is getting 12.5% of the P/S contribution, therefore I have to give the NHCEs 1/3 of that (4.17%). Why? I can't remember!!! Why can't I just give the 3% top heavy?

Help!!! Thanks.

[Earl]

there is some great stuff in the "Cross Tested Retirement Plans" section

[Tom Poje]

try this and see if it helps.

since the plan is cross tested, it is obvious the HCE is getting 'more' than the NHCEs

you aren't testing things as a DC plan, but rather converting things to the DB world - you are figuring an accrual.

remember your rules for top heavy combined db/dc? The minimum is 5%. I am guessing that is the logic behind the whole gateway. It is a 'minimum', except they gave you a break and said you could go with 1/3 if HCE was less than 15%.

ok, maybe my logic is twisted, but heck, try and explain the things the govt does.