Guest KMP Posted July 19, 2004 Posted July 19, 2004 My understanding is that safe harbor contributions are only required to be given to NHCEs and that they are permitted for HCEs. I also think that you can cap the safe harbor match to HCEs. How about giving the HCEs a less generous match than the safe harbor match (i.e., giving HCEs 25% up to 5%)? Would this still be considered a safe harbor plan if all NHCEs receive 100% up to 3% plus 50% for the next 2%?
g8r Posted July 20, 2004 Posted July 20, 2004 As long as at any rate of deferrals, the rate of match for the HCEs is never higher than the rate of match for NHCEs, then I think you'd still satisfy the safe harbor.
Guest KMP Posted July 20, 2004 Posted July 20, 2004 Do you think we should apply for a determination letter on this?
g8r Posted July 21, 2004 Posted July 21, 2004 That's a tough question to answer. But, you can never go wrong by requesting a determination letter. I know we're in the EGTRRA remedial amendment period, but if you want some comfort on this one I'd submit now.
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