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May be a very simple question and answer!


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Guest m.n.ouellette
Posted

Ok. Here goes a really simple question! I just need verification:

If I put in a Safe Harbor match, and the HCE is the only one who defers, will I still pass all testing?

Please don't laugh... just don't wanna get caught next year having to do a plan re-design. And I am having a brain f**t. Thanks!

Posted

simple answer is yes.

a more complex answer would be to say I would want proof that all nhces are aware a plan exists. it is one thing to say that a notice was given to employees, its another thing to prove. possibly have people fill out election forms indicating 0 deferral. I only bring out the point because if plan was ever audited it looks bad.

Guest m.n.ouellette
Posted

Thanks Tom. The notice is given to each participant, but I will suggest they get a signature every time! I appreciate the answer.

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