3% NESH used for Safe Harbor ACP and part of PS?

[Guest Newbie-In-Training]

3% NESH for all eligible employees.

Non-Safe Harbor Allocation for Profit Sharring

2% Profit Sharing for all others

10% for HCEs.

They want the 3%NESH to also count towards the 5% minimum gateway.

Is this allowed?

[Madison71]

3% non-elective counts towards 5% gateway. Minimum gateway is the lesser of 5% or 1/3 of the highest allocation provided to an HCE).

[Guest Newbie-In-Training]

3% non-elective counts towards 5% gateway. Minimum gateway is the lesser of 5% or 1/3 of the highest allocation provided to an HCE).

Do you know how I get it to test in Relius?

[Tom Poje]

what type of account (source) do you have it coded on Relius?

[Guest Newbie-In-Training]

what type of account (source) do you have it coded on Relius?

3% NE SH is under source ER MATCH

2% for NHCE PS is under source EMPLOYER

as well as the 10% for HCEs PS

I have both sources coded for ACP.

[rcline46]

I could eviserate everyone who calls a 3% NESH a match. Get on the right language Newbie-in-training and don't let your clients, contacts or anyone else ever call it a match. Correct them every time. I have been trying to get my clients/brokers/contacts to get it right since 1998 - and some of them STILL want to call it a match.

Next, how do you reach the conclusion that the 2% and 10% profit sharing contributions could be tested under ACP? Do you think those are also match contributions? Their testing option is NONE.

Get them into to proper test situation and Relius will magically do the calculations correctly.

[Guest Newbie-In-Training]

I could eviserate everyone who calls a 3% NESH a match. Get on the right language Newbie-in-training and don't let your clients, contacts or anyone else ever call it a match. Correct them every time. I have been trying to get my clients/brokers/contacts to get it right since 1998 - and some of them STILL want to call it a match.

Next, how do you reach the conclusion that the 2% and 10% profit sharing contributions could be tested under ACP? Do you think those are also match contributions? Their testing option is NONE.

Get them into to proper test situation and Relius will magically do the calculations correctly.

Alright.. I have a 3% employer non elective safe harbor contribution. In addition the employer wishes to add 2% of employer discretionary contriubtion (so ti will total the 5% minimum gateway for the NHCE's and then the HCEs add 10% of employer discreionary contribution ( so their total will be 13%)

My question is... will the additional 2% employer contribution along with the 3% non elective safe harbor allowable to make the minimun gateway test?

Any Better?

[BG5150]

It should be okay. 1/3 of 13% is 4.33%

Make sure that the SH is coded as an EMPLOYER source. It will test with the rest of the PS.

[Madison71]

Thank you guys....even though I didn't post the original question, I appreciate everyone spending their valuable time answering questions and offering insight.

[Guest Newbie-In-Training]

I thank you too!!!!!!

Very much.