New Comparability Safe Harbor 401(k) Plan

[msmith]

Employer wants to allocate a 7% PS contribution to all eligible participants. The document has a last day requirement for the allocation condition - all active and terminated participants will receive the 3% safe harbor contribution.

If the gateway/non-discrimiation testing are not required, must the terminated participants still receive a gateway minimum?

[Tom Poje]

the gateway is only required if you need to cross test.

I suspect, based on what you said, the plan would probably pass on an alloaction basis and thus avoid the gateway. (unless you had over 30% termination rate and no HCEs in the group of terminees)