DB/DC cross-tested Combo

[retbenser]

Given a DB/DC combo plan with cross-testing.

Plan has:

3.0% Safe harbor 401(k)

4.5 PSP contribution

Total Employer contribution = 7.5% which covers:

5.0% Top Heavy

7.5% Gateway

Question: Is the "1,000" hours and "end-of-year employment" requirement for PSP employer contribution applicable in this case?

[Tom Poje]

lets take 2 NHCEs

one with over 1000 hours and active

another with either less than 1000 hours or not there on the last day.

since plan is safe harbor, both receive the 3%.

since both receive the safe harbor both now must recieve the gateway.

if plan still fails testing, the active, greater than 1000 could receive more under the formula, but the terminees or less than 1000 hour wouldn't in the DC plan