FAQ 100: Budget--Partnership budget - Safe harbor contribution not calculating


Attached is a 401(k) profit sharing plan that uses an age-weighted allocation for the discretionary profit sharing piece. In addition, it has a 3% employer nonelective safe harbor contribution. It is an LLC. I want to maximize ($41,000) for the owner, minimize everyone else. I ran it once, then changed some compensations. When I reran the figures, I get very strange numbers for the safe harbor contribution.


The problem is that you have the safe harbor source specs (source 4, in this case) coded with the Force Contribution field set to "Yes-Use Transactions/Input by EE", so the budget routine was not recalculating those contributions. If you change that field to "No-Use Valuation Calcs", the budget routine will recalculate the safe harbor contribution based on the revised compensations.