Safe Harbor matching plan

[Belgarath]

I did a search, and there's some conversation about this subject, but I'd like to see if anyone has changed or has additional opinions.

Plan is a safe harbor match plan. Only two employees - one is HC and one is NHC. The NHC does NOT defer. For 2009, the employer forgot to contribute the SH match of $960.00 on his own behalf.

Two (at least) possible interpretations.

1. Take the hard line, and say that since the SH match was not made by 12-31-2010, the plan fails safe harbor, and therefore must be tested with ADP, which would obviously fail.

2. Take the approach that not only is the above ridiculous, but isn't even permissible, as the plan can't provide that failure to contribute SH causes the plan to revert to ADP testing, so the safe harbor MUST be made.

I say 2 is the way to go - correct under SCP as a significant error, as we are within the 2 year timeframe, and contribute the $960.00 match plus earnings.

Votes?

[GMK]

Hey, I forgot. (hmmm )

Anyway, I'll vote 2.

As you say, and as far as I know, 1. is not an option.