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Full Version: 3%-of-pay SH NEC as gateway for 9% for HCEs?
BenefitsLink Message Boards > Retirement Plans > Cross-Tested Plans
J Simmons
The x-testing gateway may be 5%-of-pay or if less, 1/3 of the highest percentage-of-pay accrued by an HCE.

The 3%-of-pay 401k safe harbor NEC is counted towards the gateway.

Presuming that rate group and ABP testing will pass, may that 3%-of-pay 401k safe harbor NEC counted towards a gateway alone support accruals for HCEs if none of them accrues more than 9%-of-pay?
Bird
Yes
J Simmons
Thank you, Bird!
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