Reference: FIN 412_ project - MIKE AND MARIA ROMAN.docx (coursehero.com) 

Please answer the below question:

 

1. Suppose Mike implements a safe harbor 401(k) plan with a 100% match up to 4%, and that all coaches are qualified and contribute at least 4% to the plan. How much can he contribute to the SEP for himself? (_{*Note: Please indicate the computation and where you obtained the number.)}

 

2. Based on the information from question 1 would the plan pass or fail the ACP and ADP testing for HCE and NHCE?  Please show your calculation. 

 

For the Question 10 calculation, please see the following for your convenience.   

Basic Data
#	Employee	Ownership	Age	Tenure	Salary	Deferral	ADR	Match

ADP test	Alternative A		Alternative B
	HC definition without election*		HC definition with election*
Employee	HC	NHC	HC	NHC

ACP Test
HCE	Match	After - Tax	Compensation	ACR

NHCE

Match

After - Tax

Compensation

ACR