The plan meets ADP and ACP safe harbor with 3% non-elective safe harbor contribution.
The plan also has a mandatory 15% match on the 1st 6% deferred. Can this match have a last day requirement and still meet ACP safe harbor with the 3% non-elective contribution.
Thanks.
Full Version: Safe Harbor 3% non elevtive with additional match
QUOTE (Richard Anderson @ Jun 22 2007, 03:07 PM) 
The plan meets ADP and ACP safe harbor with 3% non-elective safe harbor contribution.
The plan also has a mandatory 15% match on the 1st 6% deferred. Can this match have a last day requirement and still meet ACP safe harbor with the 3% non-elective contribution.
Thanks.
The plan also has a mandatory 15% match on the 1st 6% deferred. Can this match have a last day requirement and still meet ACP safe harbor with the 3% non-elective contribution.
Thanks.
No, final 401k regs say ACP test shall apply for years where the allocation requirements are required to be satisfied; even if 3% is being provided.
I'd go even further to make a correction on the initial statement.
A plan meets the ADP safe harbor by providing the 3% SHNEC.
at that point in time the ACP is not satisfied. if no match is made, there is no ACP test, so the ACP test becomes a moot point. but the 3% SCHEC does not satisfy ACP safe harbor.
A plan meets the ADP safe harbor by providing the 3% SHNEC.
at that point in time the ACP is not satisfied. if no match is made, there is no ACP test, so the ACP test becomes a moot point. but the 3% SCHEC does not satisfy ACP safe harbor.
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