In a SH new comparability plan, can the PS allocation include the 3% Nonelective?

[kwalified]

looking at an illustration HCE gets a 13.2% all the NHCE's are getting 4.4%. The 4.4% includes the 3% nonelective. Is this acceptable? I have always been under the impression the nonelective had to be done separately.

[ETA Consulting LLC]

looking at an illustration HCE gets a 13.2% all the NHCE's are getting 4.4%. The 4.4% includes the 3% nonelective. Is this acceptable? I have always been under the impression the nonelective had to be done separately.

It's legitimate.

Good Luck!

[cpc0506]

looking at an illustration HCE gets a 13.2% all the NHCE's are getting 4.4%. The 4.4% includes the 3% nonelective. Is this acceptable? I have always been under the impression the nonelective had to be done separately.

Are the HCE's getting the 3% safe harbor as well?

[BG5150]

Would that matter?

[Lou S.]

I have always been under the impression the nonelective had to be done separately.

QNECs to pass testing can't be used in 401(a)(4) testing but safe-haror non-elective contributions that are very simialr to QNECs can be used in 401(a)(4) testing.

That might be some your confussion.

[Tom Poje]

the reg cite is 1.401(k)-3(h)(2)

a shnec...may also be taken into account for purposes of determining whether a plan satisfies section 401(a)(4)

(You can not impute disparity on the safe harbor portion [since you can't integrate a safe harbor contribution], so for example, if the plan was tested on an allocation basis with imputing disparity you would have 3% shnec + 1.4% ps + 1.4% disparity (not 4.4% disparity))

[kwalified]

Thanks for weighing in and the cites.