MAX SH NEC %

[Basically]

What is the maximum SH NEC % that can be written into a SH plan?   6%

[Belgarath]

As high as the employer wants to go, unless you have a document with a hard-coded cap. But realistically, you have to consider deduction and 415 limits, for example.

[Basically]

Really?  I'll have to read the doc.  I guess I assumed there was an IRS limit.  

After I posted I though... "give them the 3% and then sweeten the pot with a PS NEC if they want.  That way they are not locked in".  

Appreciate the response.  Always good to know in any event.

[Lou S.]

The NEC does not have a limit other than those mentioned by belgarath.

The safe harbor match has limits some of which are tied to not matching on deferrals above 6% of pay. But outside of 415 I 'm pretty sure a if you want a match something like of 400% of the first 6% that would still qualify as a safe harbor formula.

[Belgarath]

Just be careful to distinguish between the ADP safe harbor match, and the ACP safe harbor for discretionary matching.