BenefitsLink Message Boards > Recharacterizing matching contributions as catch-up contributions to correct ACP failure

Full Version: Recharacterizing matching contributions as catch-up contributions to correct ACP failure

BenefitsLink Message Boards > Retirement Plans > Correction of Plan Defects

cpp

Mar 9 2004, 12:11 PM

If a plan with matching contributions fails the ACP test, can a plan sponsor recharacterize the excess matching contributions as catch-up contributions for participants over age 50?

MGB

Mar 9 2004, 12:17 PM

No.

Catch up contributions MUST be elective deferrals. It cannot come from the employer.

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