SHMAC & gateway minimum

[pmacduff]

Can the safe harbor match count towards the gateway minimum? I know this should be an easy question, but I couldn't find a thread referencing and all of my cross-tested clients, to date, were using the SHNEC and are top heavy...I seem to remember something about 'non-electives' being counted, so I thought maybe the SHMAC doesn't. Any help appreciated.

[Leopurrd]

I'm sure Tom could give you the cites for the regulations, but here is my attempt to answer your question:

No. Gateway contributions must be under 401(a) and match is under 401(m)(?). If you had a 3% SHNEC, this could be used for gateway/avg bens purposes (but if your HCE had more than a 9% contrib, you would have to give an additional contrib for gateway using the lesser of 1/3 or 5% rule).

Your match would help with the average benefits test, though!

Vicki

[Tom Poje]

oooh. you are nasty. thinking I have all the safe harbor regs memorized.

though this must have come up, or I probably even had it in my presentation, but I have the cite listed in the margin

1.401(k)-3(h)(2)

and to clarify, the SHMAC would be used in the avg ben PCT test portion of the avg ben test. whether it helps or hurts is another matter.

[Leopurrd]

Tom,

trust me, it's a complement.

BTW, thought your presentation at ASPPA was great, especially your song

[Tom Poje]

now you make me turn even more red

my biggest regret is that I never get a chance to meet some of the wonderful people who use Benefits Link.