3% SH and eligibility to defer

[K-t-F]

I read some old posts... am I reading this correct?...

There can be an immediate entry date for participants to defer but to receive the 3% SH NEC there can be a 1 year 1000 hour requirement... and still pass ADP?

Soooo... basically everyone can defer, sponsor can max out... and the 3% given to eligibles who pass the 1 year 1000 hr... and ADP is passed.

did I say the same thing twice?

[austin3515]

There are some twists to it...

1) Watch out for top heavy, because the Plan won't be exempt.

2) Watch for HCE's with less than a year of service (i.e., owners, owners spouses, or owners kids), because you'll need to run ADP testing for portion of the Plan covering just the people with < 1 year.

But otherwise yes...