I'm looking for comments on running a short year with the following:
Plan is TH. Plan has 3 classes - Owner lawyers, Non owner lawyers, all other
PY - 10/1/04 through 9/30/05. Short Year - 10/1/05 through 12/31/05
Plan is 401(K) with SHNEC(3%).
For Plan Year ending 9/30/05:
1 Owners contributions(comp. of 205,000) = 401(k) made in 2005 was 6k
SH was 6,150
PS was 20,275
1 Non-Owner(HCE) = SH = 3%
PS = 0
3 EE's = SH = 3%
PS = 1.3%
Passes gateway and 410(b) etc.
Q:
What is obligation for Short Year: SH notice was given.
Prorate comp at max of 52,500?
Allow owner to contribute 401(k) of $12,000(over 50)
Safe Harbor of 3% to Class 1, 2, and 3
The result is it gets the owner to 46K by 12/31/2005. Any suggestions or comments?