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Full Version: 401(k) Match over 100%
BenefitsLink Message Boards > Retirement Plans > 401(k) Plans
nancy
Is there a problem with a plan matching at a rate greater than 100% (i.e. 110% of the first 5% of compensation)? This is a nonsafe harbor plan with a discretionary match. No ACP failure problems.
Jim Chad
no problem. Unusual, but no problem.
Where can I apply?
Tom Poje
it is possible that you might not be able to include all the match of the NHCEs in ACP testing.
for better or worse you might have to use the 'representative rate', etc in testing (see 1.401(m)-2(a)(5))
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