FAQ 539: 401a4--Not including safe harbor nonelective source in ABT


I have a Safe Harbor 401(k) plan with 3 sources:

1) Deferrals
2) Safe Harbor Non-Elective (3%)
3) Discretionary Profit Sharing - using a tiered/new comparability allocation

When running the 401(a)(4) Test, ASC is not including the Safe Harbor Non-Elective portion to compute the average benefit/allocation. Is there a special coding to include this source?


Check to make sure that the SH/QNEC source is checked in the 401a4 setup under "sources to use for ABPT". This is where the average benefits test picks up the data for the source.