Short Question

Is there ever a disadvantage in having a safe harbor match pan based on compensation from the date of entry? 

Thanks.

My thought is if it was top-heavy, then compensation would need to be based on the entire year IF there is any additional employer contribution.  Otherwise, you are fine as to date of entry and I can't think of any other disadvantage.  Of course, SH match also doesn't count for gateway if you have new comparability, but you didn't ask that question.  

1 hour ago, Dougsbpc said:

Is there ever a disadvantage in having a safe harbor match pan based on compensation from the date of entry? 

Thanks.

Short answer:

Disadvantage? No.

Well there is one practical disadvantage.  If you're the one calculating it, your client needs to provide you additional information.  So I suppose it is more work for you and more work for your client.  But if you're goal is to do what's best for your client then that wouldn't be a disadvantage at all!  It will save them enough to make it worth the extra 5 minutes of work.

And if you're the participant, of course you'd rather get 4% of the full year's pay!