| FAQ 916: Budget - Zero contribution for ER source 2 |
I am trying to calculate the safe harbor matching contribution ONLY for the owner, which I have to do through the budget routine so that it reduces his compensation appropriately. Please help!!
Proper way to code the budget for a zero Source 2 contribution.
The Budget program is "tied" to Source 2 so you must include this source on the setup screen. On the budget screen for non New Comp plans, enter $0 in the Source 2 Contribution field and run the budget. Be sure the Specs-Source 2, "Show Total Contribution", screen is blank, and very importantly that the Limits-override 415 field is also blank for an owner (so not to target). Save the plan specs. The Source 2 Contribution on the Budget screen must show an input zero "0", run the budget and the Employer source should be checked.
If the "Allocation method, is set to use 8-Multiple Tiers (New Comp) then code the Parameters screen, to "Formula Contribution" and consistent Group Definition with no other percents or dollar amounts.
Next go to the main ASC menu-Access-Dialog Data and in the first white square box, check the box next to PARTBUDGET and click on "Restore Dialog Data" and "OK". Now you can go to the budget screen and reset up your calculation be sure to check the box to include Source 2 and code the Source 2 Contribution as "Formula Contribution Only" and run the budget.