Integrated/Top Heavy with shmt and disc match

[Lou81]

Good Morning,

Have an integrated profit sharing plan, that is top heavy.  It also has basic safe harbor match as well as discretionary match (66.67% up to 6%)

I have a new participant that entered 7/1, the plan uses date of entry comp.  I am trying to determine her profit sharing allocation.

i.e full year comp 30,000, entry date $15,000, she is receiving the SHMT 3.5%, her disc MT is 2.68% of  entry date comp

When i run the profit sharing, (the allocation is 3.22%) should she get 3% of full year, or just the 3.22 of entry date comp? 

Between all employer sources she is receiving greater than 3% of full year comp. 

I just want to make sure meeting the top heavy requirements for an integrated plan.

Thank you for your help!

 

 

[K2]

She should get SHMT + MT + PS based on DOE comp, but not less than 3% of full year pay.  So you'll bump her PS if you fall short, but you shouldn't.

[Lou81]

Thanks K2!   Yes, she is receiving greater than 3% of full year comp between all ER sources. 

[Lou S.]

K2 is correct assuming your plan document offsets top-heavy for matching contributions received. I think most do this, but there is an option to not offset the TH by matching contributions so double check your Plan document terms.