Guest PB&J Posted July 22, 2005 Posted July 22, 2005 Is there any reason why an safe harbor 401(k) plan would (or should) set a maximum limit on a participant's elective deferrals? The Plan uses a Basic Matching Contribution to satisfy the safe harbor requirements.
Randy Watson Posted July 22, 2005 Posted July 22, 2005 One thought that comes to mind is participant loans. You want to make sure that there is enough compensation left over after a deferral to make loan payments. I'm sure there are other reasons as well.
austin3515 Posted July 26, 2005 Posted July 26, 2005 Limit the keys to avoid top-heavy? Austin Powers, CPA, QPA, ERPA
No Name Posted July 26, 2005 Posted July 26, 2005 Safe Harbor 401(k), within the rules, will not be Top-Heavy (even if it is outside the rules).
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