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leighl

403(b) ACP testing and 414(s) compensation

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leighl    0

As a company, we have a policy of testing plan with comp exclusions for 414(s) first, then using that compensation for ACP testing.  However, I do not believe that is necessary.  Under IRS regulations, 415 compensation can be used for ACP testing, and, if the plan passes, no further action is needed.  I remember seeing posts to this effect.  Am I incorrect?  Can someone give me examples of reasons 414(s) is needed for a plan with only a match that passes ACP on 415 compensation?  Thank you!

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