I understand that Key/HCEs can be discriminated against, and don't have to receive any Safe Harbor match if the document so states. Based on the formula, one of the partners should receive approximately $8k in safe harbor match, but only wants to put in $5k for himself. Can he do this?

The only right way for him to get a smaller match is to defer a smaller amount. It is always wrong to do something different than a specific provision in the Plan document.

I'm usually scared to death to use the words always or never....but this one I'm pretty sure about.

Thanks for your comments Jim! It really rubbed me the wrong way too - we're telling him it's the formula amount or nothing (exclude HCEs altogether). Thanks again!

You can always write a lower formula for the HCEs, as long as it is done before the year is over.

Don't you mean it has to be amended before the safe harbor notice is distributed (30 days before the plan year begins)?

No SH match for HCEs, discr match not to exceed SH match or 4% whichever is less, no testing, works for me.