Annual Safe Harbor Compensation Limit

[coleboy]

Hi,

A participant is deferring 6% of pay and receiving the 4% safe harbor match. His match suddenly dropped down to 2% then to 0%. Upon questioning the payroll rep, I was told that it was because the participant reached the annual safe harbor compensation limit. 

So his match was capped at $8250.00 even though he had not reached the $275,000.00 limit yet. I have never heard of this.

Is this correct?

Thank you!

 

[Tom Poje]

my first question would be why the highlighted indicates 3%.

That sounds like a 3% nonelective not a 4% match

[coleboy]

Exactly! I was told it goes back to the "old" safe harbor limit of 3%. I said that is for the non-elective safe harbor not the match. Apparently Kronos has this set in its system.

Am I missing something here?

[NJ Mike]

For those of you old enough to remember the TV show "Get Smart" it sounds like something Maxwell Smart would say "Fell for the old safe harbor limit of 3% trick again".

Good luck in trying to straighten them out.

Mike

 

 

 

[Tom Poje]

send the guy to the board and have him write 100 times.

works every time with Bart....oh wait...never mind