A Defined Contribution Plan has chosen Prior Year Ratios for Nondiscrimination testing. The plan gives a discretionary match. The prior year, the plan, because of economic conditions, did not give a match. Now, in the current year, the plan is able to give a match to all eligible participants. Since no ratios were created in the prior year, there is no prior year ACP NHCE ratio. The plan has given a discretionary match in other years so the 3% start up ratio is not correct, what ratio can be used to substitute for the prior year ACP NHCE ratio.

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