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Posted

We just brought on a KSOP. We learned that their attorneys advised them they could not have the safe harbor provisions for ADP/ACP if they were a KSOP, so they amended it out when they made it a KSOP. This does not sound right to me. I am not sure where to look to find the rules regarding KSOPs . Can anyone shed a little light on if this employer can have safe harbor provisions in their KSOP plan and/or where I can find citations regarding this matter?

Thank You!

Posted

The ESOP contribution can be designated as a match and used to meet the alternative safe harbor test. I do not know why the client would be advised otherwise.

Posted

I agree with Stephen. However, I'm not sure how productive it would be to get in an argument w/ the plan's attorney's. I think it's more of an issue of finding a cite where it says you can't, and I don't think there is one.

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