Safe Harbor Enhanced Match w/an additional $25K profit sharing contribution

[Guest TLCPension]

What testing requirements does a Safe Harbor Enhanced Match subject to when they made an additional pro rata $25k contribution to the plan? Do they lose their safe harbor status?

[Tom Poje]

that depends.

An enhanced match satisfies ADP safe harbor, if less than 6% of compensation satisfies ACP safe harbor as well, otherwise you have ACP testing to perform.

The additional nonelective contribution merely eliminates the free ride on top-heavy.

[Guest TLCPension]

We still have to perform general nondiscrimination, correct?

[Tom Poje]

why? if the profit sharing is comp to comp or even integrated, then that formula is safe harbor as well.

unless i am missing what you are asking.