Owners Safe Harbor Match

[Pammie57]

We have a plan where the owners did not contribute the full allowable safe harbor match for themselves for  2019 (4% basically).  They did max out deferrals for 2019.  We have always though that the owners SH  was just like everybody else - had to be trued up at year end.  they get K-1s..... Has that changed?  I was thinking I heard a discussion recently on a Relius webinar.  

[Bird]

2 hours ago, Pammie57 said:

allowable

If it is a SH match and they are eligible, it is required.  I'm not sure how your firm operates but we tell people what they have to or may contribute, and if they are getting K-1s then they would have little to no idea what the actual required contributions are until we do the calcs.

[Belgarath]

Depends upon your document. Many allow the safe harbor contribution to the HCE's to be discretionary - any amount from zero up to the SH amount contributed for the NHCE's.

But perhaps I'm misunderstanding your question.

[BG5150]

What do you do when the owner refuses to allocate a SH contribution on her own behalf?

[John Feldt ERPA CPC QPA]

If it is required under the terms of the plan, explain the potential consequences for failing to follow the plan’s terms. Recommend they obtain advice from their own legal counsel.