Safe Harbor- Control groups

[Guest New401k]

Control group:

Company A wants to adopt safe harbor match of 100% up to 4%.

Company B wants to adopt safe harbor match of 100% up to 6%.

Both companies have HCEs.

Can this be done? Do we just need to aggregate and test 410(b)?

Am I missing anything?

Thanks.

[ETA Consulting LLC]

Where's your manager? Just kidding

Your first step in answering this type of question would be to test Company A and B separately under 410(b) to ascertain whether they could each pass as a stand alone plan. If each plan cannot pass 410(b) separately and on its own, then the different formula for each Company would not work. Aggregation of the plans for 410(b) would require you use the same formula. [[i can immediately imagine a situation where at least one HCE defers 6% and receives a 6% match while at least one NHCE defers 6% and receives a 4% match]]

Good Luck!