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Posted

I have a safe harbor plan with an enhanced match of 100% up to 4% of deferrals. The plan excluded too many on-call employees last year and failed both Ratio Percentage Test and Average Benefits Test under 410(b) for deferrals and safe harbor match. How do you correct - an 11(g) retroactive amendment to bring in some of the on-call employees - 1. how do you determine which ones to bring in and 2. what is the corrective contribution for the missed deferral?

Posted

No we do not use fail safe and that would only apply to allocation conditions. This is an eligibility exclusion failure.

I think probably bumping up the NHCE's benefit is the easiest route to pass ABT. But who do you bump up?

  • 1 year later...

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