Safe Harbor ER Contribution

[justatester]

Just want to double check...

I have a plan that has a 10% contribution that goes to all employees-meets all the Safe Harbor requirements. They want to make an additional contribution to 2 HCEs (replacing a db arrangement). So, I know I need to perform the general test/new comparibility test. The question is: can the plan make this 10% contribution a Safe Harbor contribution and still use that amount to satisfy the general & gateway test?

[401king]

Just want to double check...

I have a plan that has a 10% contribution that goes to all employees-meets all the Safe Harbor requirements. They want to make an additional contribution to 2 HCEs (replacing a db arrangement). So, I know I need to perform the general test/new comparibility test. The question is: can the plan make this 10% contribution a Safe Harbor contribution and still use that amount to satisfy the general & gateway test?

The safe harbor profit sharing contributions will count towards the general test. Is the entire 10% already documented as being a safe harbor contribution? If so, for 2012 and beyond you may wish to reduce it to 3% and provide 7% as a discretionary, vested contribution. Both will count toward the general test in the same manner.