pmacduff Posted August 29, 2019 Posted August 29, 2019 We know that a safe harbor 401(k) that "consists of solely a cash or deferred arrangement and matching contributions that satisfy the safe harbors of 401(k)(12)/(13) and 401(m)(11)/(12)" gets a pass on the top heavy requirement. I'm sure I'm overthinking but if I have a Plan with employee deferrals and SH match basic formula, then an additional 100% vested ER match of 25% up to 4%, I still get the TH free ride, right?
Below Ground Posted September 3, 2019 Posted September 3, 2019 Yes, you still get the pass on Top heavy. The additional discretionary match is also qualified under Safe Harbor, provide that this extra Match does not exceed 4% of pay, and the formula does not recognize deferrals over 6% of pay. Also, 100% vesting is not needed on the discretionary match. Having braved the blizzard, I take a moment to contemplate the meaning of life. Should I really be riding in such cold? Why are my goggles covered with a thin layer of ice? Will this effect coverage testing? QPA, QKA
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