200% of 6% safe harbor match

Nothing wrogn with this right, ADP and ACP Safe Harbors still apply?

Yes I know about the 415 limits and will caveat about that.

I think that's right.  It does not match on deferrals over 6%, and I think that's the only cap.

This will NOT meet the requirements for a discretionary ACP safe harbor match. It should be ok for a fixed match however.

Correct, this is my actual Safe HArbor Match.  Not the basic SH Match, but 200% of 6%.  So based on that do you agree that my ADP and ACP Safe Harbors are met?

For example if my Safe Harbor Match was 100% of 7%, that meets the ADP Safe Harbor but not the ACP Safe Harbor and I'd be running on ACP test on my Safe Harbor Match.

i couldn't have asked for a better audience here, so please confirm you agree!

Agree. 

As long as the formula is written into the plan doc, then I agree you are good on the ADP and ACP safe harbor.

1 hour ago, austin3515 said:

Correct, this is my actual Safe HArbor Match.  Not the basic SH Match, but 200% of 6%.  So based on that do you agree that my ADP and ACP Safe Harbors are met?

For example if my Safe Harbor Match was 100% of 7%, that meets the ADP Safe Harbor but not the ACP Safe Harbor and I'd be running on ACP test on my Safe Harbor Match.

i couldn't have asked for a better audience here, so please confirm you agree!

Yeah 200% of the first 6% SH match satisfies the enhanced safe harbor match formula for ADP/ACP

100% of the first 7% SH match satisfies and enhanced safe harbor match with respect to ADP, but not ACP. Though there are a couple ways you can run the ACP test as I understand it. I've never actually had to worry about in the practice though.

I agree it would work but would you really need Safe Harbor with such a generous match? 

20 hours ago, Kac1214 said:

I agree it would work but would you really need Safe Harbor with such a generous match? 

My guess is that a lot of the executives are participating and not many of the rank and file.  With a generous SH match, it allows the company to a) give a bigger benefit to the execs without having to do a non-elective contribution and b) have the top heavy covered.

In this case its the other explanation.  The people making the decisions, it's not their money, LOL...

Does the plan design austin3515 describes work if the matching contribution is 500% of the up to 6% in elective deferrals?

(Assume the plan applies 401(a)(17) and 415(c) limits.)

(Assume the resulting matching contributions are less than 25% of the participants' compensation.)

Yes sir!

On 9/13/2022 at 12:57 PM, Kac1214 said:

I agree it would work but would you really need Safe Harbor with such a generous match? 

I have multiple clients a client who give 10% profit sharing.  Another who did 15% for decades (until they got bought out).  Clients want what they want, our job is to help the get it if it's legal.