Safe Harbor 3% Contribution?

[Jilliandiz]

I have a x-tested plan, and the NHCE's need to receive 5% for the gateway, which in this circumstance, will pass all testing...however, there is also an Non-elective 3% Safe Harbor Contribution, can that 3% be used towards the 5% gateway??

Or do the NHCE's need to receive the 3% SH and an additional 5% Profit Sharing?

[Guest Bob K]

According to IRS Notice 98-52, the 3% SH allocation may be used to satisfy the cross-testing.

[jaemmons]

Also, keep in mind that you may have to "bump up" (so long as your plan document contains language to do so) those who only receive the 3% NE safe harbor but are not eligible for the profit sharing plan, in order to meet the gateway requirement of 5%.

[austin3515]

Keep in mind also that if you disaggregate into statutory and otherwise excludable employees, the otherwise excludables do not need to receive the gateway. See what your "topping off the tank" amendment says.