3% Safe Harbor 401k with X-tested PS

[dmb]

A 3% SH 401k plan with a X-tested PS feature includes a last day rule for the PS allocation. If a participant terminates he is entitled to the 3% SH allocation. Does that mean he is subjec to the gateway allocation if it is more than 3% of comp?? Thanks.

[Guest trumpy]

Yep

[blue]

If the particpant was in the ohterwise excluable group, would you still need to provide the gateway?

[Guest trumpy]

Nope

[dmb]

Thanks for the input. Now, what if the plan was a Safe Harbor Matching 401k and had a last day requirement for a profit sharing allocation. A participant terminates with more than 500 hours and has deferred so they are entitled to the safe harbor match. Is that participant subject to the minimum allocation gateway?? Thanks again.

[Guest trumpy]

Nope

But they would come into your rate groups as a zero

[jquazza]

Trumpy, did you take the rhetoric class offered by Warren Beatty?