Guest SLK Posted September 19, 2006 Posted September 19, 2006 Can anyone help me come up with a reason for my client, why they can't allocate HRA excess to the 401K as PS contributions? They have 1 ppt who has met the HRA contribution cap and they want to make sure that guy still gets his money so give it to him as PS in the 401K plan. I tried explaining that the plans are not covered by the same laws and are not the same plan and each have their own defined set of rules which must be applied appropriately but I'm looking for a more "professional" answer. Any help is appreciated!
namealreadyinuse Posted September 19, 2006 Posted September 19, 2006 Don't the HRA funds rollover from year to year? If not, that is your easiest fix. Can a profit-sharing contribution for one person pass nondiscrimination testing in their world? You do have a lot of flexibility to make PS contributions if you can pass nondiscrimination testing.
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