safe harbor match true up

[K2retire]

It must be getting too close to 9/15 -- my brain is on overload.

In a plan with immediate eligibility for deferrals, but 1 Year of Service for SH match, I'm questioning how the match is calculated. The document calls for compensation while a participant for the match calculation. We have a participant who deferred less than 1% of full year compensation and became eligible for match on December 1.

Using the basic safe harbor match formula, my first thought was that she should receive a match for exactly the amount of her December deferrals. ($15 in this case.) Datair came up with a higher number than that, so I started trying to figure out how it was calculating it. Apparently Datair is comparing the total deferrals for the year to the match eligible compensation and using that percentage to figure the match. ($125.72 in this case.) That seems to defeat the purpose of having delayed match eligibility and using compensation while a participant.

Is that correct?

[BG5150]

What is the calculation basis for the match? Payroll? Or Yearly?

[buckaroo]

My recollection is that this can be an option in the plan document. Does the plan document address this? I also recall that the software I use permits the calculation to be done either way. (I think there is a check-box to limit it to deferrals while a ptp in the specific source.)

[K2retire]

The document allows the employer to elect the match period. Match is actually deposited each pay period, but they are doing a true-up because several of the executives miss out on match without it.