Nic Pospiech Posted February 16, 2021 Posted February 16, 2021 This may seem like a dumb question, but I am just wanting to make sure I understand something. I have a Safe Harbor Non Elective plan (3%) who is not going to provide any Profit Sharing or Match this year, just the 3% contribution. Will this plan automatically pass 401(a)(4) testing?
MWeddell Posted February 17, 2021 Posted February 17, 2021 I agree. It is allocated in proportion to pay and the definition of compensation must satisfy 414(s) or else it wouldn't be a SHNEC. You must not have any unusual allocation conditions on it. In those circumstances, your plan will satisfy a 401(a)(4) safe harbor and will not require general amounts testing.
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