Safe Harbor Match Formula

[Nassau]

Can someone please provide me with the regulations/site that states that safe harbor matching contributions must match catch up contributions.

Thanks,

[Kevin C]

From the Safe Harbor section of the Explanation of Provisions in the 12/29/2004 preamble to the final 401(k)/401(m) regs:

The proposed regulations did not include any exception to the requirements for safe harbor matching contributions with respect to catch-up contributions. As part of the proposed regulations the IRS and Treasury solicited comments on the specific circumstances under which elective contributions by an NHCE to a safe harbor plan would be less than the amount required to be matched, e.g., less than 5% of safe harbor compensation, but would be treated by the plan as catch-up contributions, and on the extent to which a safe harbor plan should be required to match catch-up contributions under such circumstances. After reviewing the comments and the applicable statutory provisions (including the amendments to section 414(v)(3)(B) made by the Job Creation and Worker Assistance Act of 2002, (JCWAA) (Public Law 107-147)), the IRS and Treasury have determined that no such exception is appropriate.

[Tom Poje]

I suppose the reg (1.401(k)-3©(2)) which says

Basic Match formula....100% of the employee's elective contribution that does not exceed 3%...

there is nothing in the regs that adds "excluding any catch up contributions"

Kevin makes a good point, people must have asked about it, and it was clarified in the preamble.