FAQ 904: Allocations--SH Match or Deferral only for Self-Employed Plan (no Source 2 contribution)

Problem: I'm trying to run budget routine for a partnership so that we can get the expense breakdown. The only contribution is for a SH Match and the budget routine keeps telling me I need to pick a source for Gateway... Not sure what to do since there is no profit sharing contribution....

Solution: The budget needs "Source 2" to be set up and run. If you are not allocating a source 2 contribution you still want to force it to zero (you will need to activate source 2) and then set the source 2 up as a New Comp Allocation - This is how we recommend running when there is only a SH or Deferral. Budget - Deferral Only or Safe harbor run (non source 2) coding Formula is set to zero. Be sure to check Source 2 as well as any other necessary sources for the Budget. NOTE: The Formula Contribution Only coding is important on the budget setup screen.