basic safe harbor match

[Lori H]

is there any instance where a participant who makes in excess of 245,000 can receive a safe harbor (non enhanced) match over $9800?

[rcline46]

Yeah, somebody doesn't know how to calculate the match. Legally, no.

[BG5150]

Get a job with another company that offers a SH match?

[Lori H]

how about a job with an employer who gives a dollar for dollar SAFE HARBOR match up to $22,000 deferred?

[Tom Poje]

that sounds like an enhanced match, which is fine for ADP safe harbor, but you have to ACP test amounts received above 6% of comp

[Lori H]

No, the doc defines it using the basic safe harbor match. this plan is in its first year and the payroll person had a difficult time determining the match on deferrals over 3% of pay. One other question: would the excess SH match be forfeited, returned to the company or taxable income to the participants? For example, the HCE with the $22,000 match received $12,200 too much. Where does it go? This is a calendar year plan.

[austin3515]

Forfeited. They never should have receied it in the first place.

[BG5150]

Forfeited. They never should have receied it in the first place.

And, to me, once it's in the trust it should stay in the trust; I'm not a big fan of the "mistake of fact" rationale to get money out.

[Lori H]

Forfeited. They never should have receied it in the first place.

And, to me, once it's in the trust it should stay in the trust; I'm not a big fan of the "mistake of fact" rationale to get money out.

yeah, but then why can't it be that way when its due to a failed ACP test? Just for the sake of argument, it doesn't make much sense that the participant gets employer contributions sent to them when its a Non Discrimination violation.

[austin3515]

The sense is that under a failed ACP test, the participant accured the match based on the terms of the Plan. If match is accidentally given on comp over 245, the participant is not entitled to that match.,

[Lori H]

The sense is that under a failed ACP test, the participant accured the match based on the terms of the Plan. If match is accidentally given on comp over 245, the participant is not entitled to that match.,

Thank you Austin