I have a 401k safe harbor plan that is satisfying the safe harbor using the mathcing formula. they want to add a new comparability discretionary allocation to the plan. can a safe harbor plan have a non-safe harbor discretionary allocation?

I find nothing in the safe-harbor reg. that that prohibits the employer from making additional discretionary amounts.

The minimum contribition requirement must be met first prior to the employer making any additional discretionary contributions.

earthy

I understand the employer can make a discretionary contribution. What I'm worried about is that the discretionary contribution is allocated according to a non-safe harbor formula. Would the IRS have a problem that a 401k Safe Harbor Plan has a non-safe harbor discretionary contribution formula?

I don't see anything that prevents a cross tested profit sharing contribution in a safe harbor 401(k). It is my understanding that a benefit of the 3% safe harbor contribution is that it counts in testing allocations under or benefits under 401(a)(4).

I would caution that a Safe Harbor match with an additional employer contribution doesn't appear to automatically satisfy top heavy under EGTRRA.