Safe Harbor matching with a twist!

[Guest Pencor Consulting]

I have a 401(k) client that is currently matching @ 100% of deferrals up to a 4% deferral rate and the match is 100% vested from day one. Does this qualify as a "safe harbor" discretionary match? Many thanks for your thoughts and help!!

Gee Bee Fran

[Guest trumpy]

I believe that the document would need to contain the appropriate language - also would need to satisfy the notice requirement.

[Tom Poje]

trumpy is correct, document language is important.

you could have a match that is 100% vested, but, for example, if it is not subject to the withdrawal restrictions then it would simply be a 100% vested match and not a safe harbor. or if their were eligibility conditions on it.

in addition, if there are no other contributions, then you never get to the point of discyussing safe harbor discretionary because you do not pass ADP safe harbor.