Safe Harbor 3 Tier Match

[DPSRich]

Client has already deposited the 4% Safe Harbor Match. The next tier is a 6% Discretionary Match. Client only wants to deposit $20,000 of the $29,000+. Can he do that? If yes, can he just allocate by a set percentage or by salary amounts, which would be discriminatory very much in his favor.

Thank you in advance for your help.

Dpsrich

[WCC]

(1) what does the plan document say? (2) if you are planning to satisfy ACP safe harbor, not sure how you get to $20,000 on the discretionary match tier, maybe I am missing something, but isn't the max match on the discretionary tier $14,000 ($350,000*4%) for 2025? The fixed match tier can be greater. 

[BG5150]

I agree.

Discretionary match (for the purposes of ACP Safe Harbor) is limited to BOTH

No match on deferrals greater than 6% of comp 

AND

The disc. match can total no more than 4% of comp.

 

[DPSRich]

Thank you very much WCC and BG5150.