Guest csayles Posted February 28, 2014 Posted February 28, 2014 I just took over a plan with an enhanced safe-harbor match - 150% on the dollar up to 6% of compensation. In looking at the prior year allocation, the match allcoated to the HCEs was $22,500 - the same as their 401k deferrals. In limiting the SHM to 6%, would the 2012 compensation cap of $250,000 not have limited the SHM to the HCEs at $15,000? ($250,000 at 6%) The rest of the document is pretty straight forward. Thanks for any plan design guidance I've missed.
BG5150 Posted February 28, 2014 Posted February 28, 2014 The match basis is capped at 6%, or $15,000 in your case. The match allocation is 150% of that which is $22.5k. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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