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Santo Gold
If a Profit Sharing plan uses a points method for allocation (points for compensation increments of $100 plus point for YOS) of employer contribution, is that considered a safe harbor for 401a4 purposes? If not, can it be designed in a way that it would be considered safe harbor?
vebaguru
No and I doubt it.
Steve C
Take a look at the uniform points safe harbor found at 1.401(a)(4)-2(b)(3). Your design may qualify, but you still need to be able to show that the average allocation rate for HCEs is no better than the average for NHCEs.
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