Pixie Posted February 23, 2017 Posted February 23, 2017 I have a plan that does the 3% safe harbor and also has the option for discretionary. If we give the staff 3% can we give the highly compensated 9% (the 3% base plus 6% discretionary?). The plan passes Top Heavy due to the 3%, the Gateway test due to the 1/3rd rule and also passes the 401a4. Thank you for your help!
BG5150 Posted February 23, 2017 Posted February 23, 2017 sounds good as long as coverage is passing, too. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Lou S. Posted February 23, 2017 Posted February 23, 2017 If the document allows for it and you pass all related testing, they yes you can.
Tom Poje Posted February 23, 2017 Posted February 23, 2017 yes, caveat being: assuming you don't have someone who only received the gateway based on mid year entry comp. they would have to get extra profit sharing to get bumped up to 3% based on total salary to satisfy top heavy Pixie 1
BG5150 Posted February 23, 2017 Posted February 23, 2017 11 minutes ago, Tom Poje said: yes, caveat being: assuming you don't have someone who only received the gateway based on mid year entry comp. they would have to get extra profit sharing to get bumped up to 3% based on total salary to satisfy top heavy ....and as long as they are employed at the end of the year. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now