safe harbor cross tested plan - do terminees get a non elective contribution

[k man]

the plan is cross tested safe harbor 401(k) and top heavy. the participants in question are terminees that have not satisified the plans allocation conditions (1000 hours and last day rule). do the terminated participants receive the gateway contribution?

[Archimage]

Are they receiving any type of non-elective contribution? If so, then they get the gateway.

[Blinky the 3-eyed Fish]

Many prior threads on this.

I will assume that the otherwise excludable rule is not a factor here. That being said, if participants here benefit in the nonelective portion of the plan, then they must receive the gateway. Benefiting in the nonelective portion includes ps contributions, th minimums, safe harbor nonelectives and QNEC's.

You actually don't provide enough information for your specific case. You could be providing the safe harbor match, that match could satisfy TH and then, if they otherwise did not receive a contribution from another nonelective source, they would not be required to get the gateway.

[k man]

blinky, i dont believe they are getting another non elective contribution (besides the safe harbor PS). does the fact that they are getting the safe harbor ps trigger the gateway regardless of whether they satisfy the allocation condtions> is this in the regs or a notice and if so do you have a cite?

[Blinky the 3-eyed Fish]

Regs.

Is the plan providing a safe harbor nonelective or match?

If it's the match, does the match satisfy top heavy for everyone or some?

[k man]

safe harbor PS.

[Blinky the 3-eyed Fish]

does the fact that they are getting the safe harbor ps trigger the gateway regardless of whether they satisfy the allocation condtions>

Absolutely!

Regarding the cite, use the search feature. Like I said, this topic has been discussed ad nauseam.

[Archimage]

And then some.

[WDIK]

See, this really is a good idea.