Safe Harbor Match

[Dan]

I was at a seminar on Safe Harbor plans several years ago. Stephen Forbes of Corbel made a statement about truing up safe harbor match. He said a plan can use the payroll period matching on a safe harbor plan and not do an annual true-up. However if any mistakes were made on those payroll period contributions, then you have to true-up all participants. I had never heard that before nor since.

He said it in passing and gave no reference. I have never been able to find any reference regarding that statement. Does this sound familiar to anyone? Thanks for any help.

[QDROphile]

Assuming the statement in question begins with "However" I can understand the idea, but I disagree except in one circumstance and a lot more detail is necessary to describe that circumstance. A starting point for disagreement is that the plan has to state what method is used. Plan terms must be followed. If the payroll period method is used, you can't just decide to true-up based on the year. If you make a mistake within the payroll period method, you have to correct the mistake according to appropriate correction methods.