Safe Harbor Match True-Up

We have a client that allows for the true-up of the safe harbor match.  There are a few participants that have maxed out their deferral contributions early and the match stopped.  The payroll provider is calculating what the match should be based on the deferrals and YTD compensation and funding it through the year.  Does anyone see an issue with this since the document allows for True-Up?  Or should the funding be done at year end?

As long as you are consistent and do a final true up at year end, I don't see a problem with doing it through out the year other than it could be more complicated and more chance for potential errors.

I've seen this done many times.  Like the original poster, it feels sloppy to fund a contribution sooner than required by the plan document, but the practice probably does not violate what the plan document says.

That happens often - clients want to pay the match through the payroll service provided as the year goes along and the the TPA does a true-up because plan says it's an annual match.   I dont' think it's possible to have provided too much match on a  payroll basis.  The result is always to give more to some - who reach 402g limit early, make changes during the year, etc.