Safe Harbor 401(k) Can ER max salary deferral even though other EE's d

[Guest Don J. Smith]

If an ER installs a Safe Harbor 401(k) with no match and makes a 3% Profit Sharing Contribution. Can that ER and his Spouse then salary defer $10,500 each even though the other EE's do not make a salary deferral contribution?

[R. Butler]

Yes, assuming deferrals are not limited by the document and would not exceed the lesser of 25% or 30,000 of eligible comp.

[Guest Rudy]

As long as the 3% safe harbor contribution is given to all eligible non-highly employees, the highlies can contribute up to the legal maximum based on their salaries. If allowable, up to $10,500.00.

[actuarysmith]

No offense, but isn't your scenario exactly the point behind safe harbor plans ? - not having to worry about who does and does not contribute................

The 3% non-elective (100% vested) employer contribution covers the Top-Heavy and ADP/ACP issues.

As long as you stay within the section 404 & 415 limits you are fine.