alwaysaquestion Posted July 23, 2024 Posted July 23, 2024 Our group needs to get clarification on: Can the 3% safe harbor non elective contribution be used to help pass the cross-tested analysis. Some say it can be used to help pass only the rate group Some say that the safe harbor match can be used to pass the testing Some say that the 3% can't be used to help pass the testing requirements. are we all wrong? Is some part above correct?
Mr Bagwell Posted July 23, 2024 Posted July 23, 2024 Safe harbor match does not factor into passing cross testing.... that's why you design cross tested with 3% safe harbor safe harbor 3% is used for everything to pass testing and remember... you have to pass gateway before you can cross test..... Luke Bailey, Bri, Jakyasar and 1 other 4
Popular Post Bri Posted July 23, 2024 Popular Post Posted July 23, 2024 A SH 3% nonelective amount is part of the rate group calculations, whereas a SH match is not. A match is still part of the average benefit percentage test (along with deferrals) though. Mr Bagwell, Jakyasar, justanotheradmin and 3 others 6
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