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

Problem: 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.

Solution: 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.