A client had a SARSEP plan, into which they deposited deferrals and employer contributions for part of the year. They then discontinued the SARSEP, and started a Safe Harbor 401(k) plan with a new comparability profit sharing allocation. They would like to make a profit sharing allocation for the year also. Are the contributions to the SARSEP plan considered in 401(a)(4) testing at all?

The SEP contributions are not considered in the 401(k) plan's testing. However, the SEP contributions are generally treated as contributed to a profit-sharing plan for deduction and Code Section 415 purposes. The plans are aggregated for elective limitation purposes (which are also individual limits - $15,500/20,500 for 2007). Hope this helps.