betheeg
Dec 23 2005, 10:45 AM
I have a SH 401k with a 3% SHNEC. The groups are named as the 3 partners individually, and then 1 group as NHCE"S. They are giving the 3%SHNEC, but only one partner wants to put in a PS. Can I give him a minimal ps allocation wihtout giving an allocation to any other groups as long as I pass all other testing? I've never had this before and it just seems weird....can't wrap my head around it. Thanks for any help.
jae3207
Dec 23 2005, 11:36 AM
If you don't want to give more than the SH Nonelective, you will need to limit the partner's allocation to ~8.25% of earned income (9% max allocation to meet minimum gateway requirements).
betheeg
Dec 23 2005, 11:44 AM
Right. I have him at 7.9% of comp because I had to keep his EBR lower than 3.70%. Everyone else is 3% of comp.
EBR's for HCE"S are .85%, .79%, and 3.67%
EBR's for NHCE's are 2.47%, 1.93%, and 3.70%.
So I think I am OK.
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