Lou81 Posted May 19, 2021 Posted May 19, 2021 I need some help i have 3% nonelective safe harbor plan eligibility for deferrals is 6 months with quarterly entry. eligibility for safe harbor is 1 year with quarterly entry. plan uses entry date compensation for those that enter mid-year The plan is top-heavy for 2020. I know I have to give the top heavy contribution to those that are only eligible for deferral, to satisfy top heavy. I assume i need to make an additional contribution to those that entered mid year for the safe harbor, so that they receive 3% of full year compensation. is this correct? Thank you for your time!
CuseFan Posted May 19, 2021 Posted May 19, 2021 That is correct - every non-key employee who is in the plan for some portion/money-type and is employed at year-end must get at least 3% of annual 2020 compensation from employer contributions to satisfy top-heavy. Luke Bailey 1 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
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