Safe Harbor 3% for HCEs

[Pammie57]

I took over a plan where the safe harbor contributions was not made for an employee who left June  2021.  They were a  HCE - and made over $250,000 for that six months in 2021.  The safe contribution was never funded for them and is still showing as an $11,000 receivable.  The primary question is do they have to make it?  He was not an owner.  

[Lou S.]

What does the document say?

[CuseFan]

Exactly, if document requires then you have operational defect to correct.

[ratherbereading]

Why would they not have to make it? 

[Bird]

2 hours ago, ratherbereading said:

Why would they not have to make it? 

HCEs can be excluded from SH. That's probably not the case, if it was included as a receivable by the prior TPA.

My conspiracy theory mind says this change of TPAs might have been triggered by the client not wanting to make the contribution, and thinking that it would just go away if they didn't have to deal with the prior TPA any more.

[ratherbereading]

4 hours ago, Bird said:

HCEs can be excluded from SH. That's probably not the case, if it was included as a receivable by the prior TPA.

My conspiracy theory mind says this change of TPAs might have been triggered by the client not wanting to make the contribution, and thinking that it would just go away if they didn't have to deal with the prior TPA any more.

Hence my comment - I figured he wasn't excluded from the contribution to begin with. 

[CuseFan]

Yeah, whether the client is dealing with the ghost of TPAs past, present or future, the plan document provides the story.