Good 3% SH nonelec formula with disparity....

[K-t-F]

does this pass muster:

1st - pass out 3% SH non-elec

2nd - integrate @ TWB (5.7%>TWB)

3rd - allocate excess to bring HCEs to max 415 limit

I can use the 3% SH as part of my employer contribution, the draw back is that there is no vesting on the 3%... 100% vested

almost forgot... what if a SH Match.... do I need to give out minimum 3% to all as en ER contribution and then perform my integration, and if anything left allocate the excess? What if there isn't anything left... what if there isnt enough? reduce the amount of the integration? or do I reduce the 3% to 1/2 of the integration (to 2.85%)?

[Blinky the 3-eyed Fish]

Huh?

[Jim Chad]

My understanding is that the 3% SHNEC can serve several purposes, but it cannot be the base contribution in the allocation of a contribution using permitted disparity.

[K-t-F]

Blinky... did I confuse you?

The 3% can be used to satisfy TH but can not also be used as part of the profit sharing formula... I think that is my question.

For me I was trying to be fancy. I wanted to have a SH 3% Non elec formula and also use the 3% in the profit sharing formula.... as part of the disparity formula. Guess I cant.