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Full Version: Allocation to one group only-cross tested
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betheeg
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
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
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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