SNHEC with Match and PS?

[Janie Kaminski]

With a SHNEC provision, I know that discretionary matches above 4% are subject to ACP testing. If they also want to fund PS, how much of a margin could they have and still pass?

[BG5150]

Profit Sharing does not affect the Safe Harbor status of the plan.

However, making a PS will remove the Top Heavy exemption due to SH.

[Below Ground]

Just providing confirmation of the BG5150 post.  Allocating profit sharing above the SHNEC does nothing to the ACP Safe Harbor Limit.  In addition, if your Plan is designed to allow a greater SHNEC than the minimum 3%, that still doesn't buy you a higher ACP Safe Harbor Limit.  You still have the limit of not more than 4% of Compensation, and no matching applied to deferrals (summation of Roth and Pre-Tax) over 6% of Compensation.