FAQ 409: Source specs--Coding a safe harbor match and discretionary match


How do I code a plan with discretionary match and safe harbor match?


Here's how you code this situation:

Step 1: Go to Source 4 and give it a description of Safe Harbor Match (or whatever you want to call it) and set up the groups eligible, etc. Code the Contribution Allocation Method as "2-On Compensation". Don't code anything under the "Show Total Contrb." button.

Step 2: In source 3, click on the "Show Match Fmla" button formula, code the first tier as 100% up to 3%, and the second tier as 50% up to 5%.

Step 3: Go to the Benefit Limits (BENLIMIT) screen in the general specs and in the bottom right corner, enter 4% in the Minimum for Match field and choose your safe harbor match source under Source for Match.

Step 4: Go to Vesting screen in the general specs, select the safe harbor match source in the Name box, and set the Vesting Schedule Code "0-100% Immediate".

That should take care of it.