Maximum Rate of Matching?

[Below Ground]

Outside of normal IRC 415 Limits and ACP Testing, is there any problem with doing a match in excess of 100%?  Thanks for your reply?

[ETA Consulting LLC]

None, whatsoever, other than deductibility.  You can provide a match of $4 for every $1 deferred up to 6.25% of salary; and that would be okay.  I hope my math is right, but you can see the point I'm making :-)

Good Luck!

[Below Ground]

Thank you for the reply.  Since you can exceed 100% under a Safe Harbor Plan using Safe Harbor Matching and the "stacked" Discretionary Match, I was pretty sure that it could be done, BUT doing so under one matching allocation formula was the sticking point for me.  Again, thanks.

[ETA Consulting LLC]

The 'discretionary' formula is the only one that is limited (to 4% of Compensation).  The reason for that is obvious, it's discretionary  and will likely not get made if EVERYONE contributes.  There isn't a limit to the 'amount' of fixed, only the amount of deferrals that may be matched.

Good Luck!

[Below Ground]

Poor choice on my part to reference the "stacked match", since that has the 4% limit.  My issue is with a discretionary match that is not associated with Safe Harbor, and the match looks like it will be at a rate of 175%.  Is that okay?  Of course ACP Testing and all other limits apply, but is a rate of 175% okay?

 

 

[BG5150]

Even if the plan is SH, you can match at any rate you want, provided all the testing is passed:  ACP, deductibility, 415.

[Below Ground]

Thanks