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safe harbor quandary


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Posted

If a small 401(k) plan covers one hce and 2 or three nhces and the company offers a safe harbor match and none of the nhce's defer, can the hce still defer the full 402(g) limit since there is no ADP test?

Posted

It seems to me as long as the proper notice requirements have been met and deductible limits aren't exceeded there's not a problem in doing that.

Posted

It's okay to do this, but you will probaby be top-heavy and a 3% contribution will have to go to the non-key's.

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