Fixed match in safe harbor 401k

[sammyp42]

I am trying to figure out the limits of a fixed match in a safe harbor 401k plan.  I know I can contribute a fixed match up to 6% of eligible play, but can the match be something like 200% of up to 6% elective deferral (effectively end up being 12%... or even more)?

I am also a little confused by the difference between a fixed match and a discretionary match.  Our plan is owner/spouse + one part time employee.  My understanding is that the part time employee needs to get the same match as the owner/spouse.... is that correct, or is there different flexibility around different matches?

Also, attached is a spreadsheet I created for myself to help run through different scenarios.  Obviously, not all types of contributions can be used together, but I have been using this to sanity test some numbers.  Please let me know if this spreadsheet looks useful, or is completely off base.  Any feedback is much appreciated!

Thanks a bunch!

401k.xlsx

[MWeddell]

Let's assume that the plan is intended to meet both the 401(k) and 401(m) safe harbor rules.

Yes, 200% match on the first 6% of pay that is deferred is permitted.

The owner will be an HCE. The other eligible employee will have to have at least as generous a match rate as is available to the HCE.  Whether the part-time employee is eligible, I don't know.

I've not reviewed your spreadsheet.

[ETA Consulting LLC]

Just an FYI... For the discretionary match, you'd make the formula something like 66.667% of each dollar deferred (where only deferrals not exceeding 6% of Compensation will receive the match).  This would put each HCE at 4% of pay since they deferred above 6%.  Since the NHCE deferred at 5%; he would receive $1066.72; not $1600.  That's only for the discretionary portion; should the owner want to limit the NHCE as much as possible.

FWIW, I'm not making any value judgements about what the owner should do; I'm merely pointing out the flexibility allowed in the discretionary formula.

Good Luck!