Alwaysthinking
Jul 18 2003, 09:53 AM
A company has a 401(k) profit sharing plan and elects the 3% non-elective safe harbor contribution. The plan allows for after tax contributions. Now, the HCEs can contribute up to 4% for after tax contribution and still maintain a free pass on the ACP test correct?
Tom Poje
Jul 18 2003, 10:52 AM
incorrect. there is no safe harbor for after tax contributions
(see also ERISA Outline Book page 11.390 2003 edition)
Alwaysthinking
Jul 18 2003, 11:29 AM
Thanks. Wishful thinking.