We have a Cross-Tested 401(k) Profit Sharing Plan where most NHCE's receive prevailing wage contributions and all NHCE's receive the 3% safe harbor non-elective contribution. HCE's are excluded from receiving the 3% SHNEC. There is no profit sharing contribution for 2008. One of the HCE's (son of the owner) received 9.3% in prevailing wage contributions for the year. When running the a4 test, do the NHCE's have to receive 3.1% of pay (gateway) or just the 3% SHNEC? I think it's the 3.1% but just want to confirm.
Thanks!