401kology

Agree with all of the "absolutely not" comments. Discretionary contributions (match or profit sharing) that do not have allocation conditions cannot be amended mid-year to add conditions. If the requirements had been last day or 500 hours of service, you could amend before any participant has earned the right to the contribution (i.e. before anyone has completed 500 hours).

You may be thinking of the chart that was published some time ago by TAG I believe but it was for the Controlled Group Determination. ASG determinations are much more difficult unless it is a textbook case with physician or law practice. Because there are so many nuances with some ownership or management oversight, it is always best to seek a legal opinion in the case of an ASG (or potential one).

Agree with Bri - you can take advantage of the disaggregation using the statutory minimums in your coverage testing

Both 403(b) plans are subject to ERISA. The 2 401(k) Plans will be merged. The 401(k) Plans are Safe Harbor plans. It is my understanding that the 403(b) Plans could be terminated and the employees would have a distributable event and that the distributions must be made within 12 months and they could rollover the assets to the 401(k) plan but are not required to do so. Is there anything that would prevent the plan termination of the 403(b) Plans on 6/30/2022 with the covered employees becoming immediately eligible for the existing 401(k) plan on 7/1/2022? I know if this were 401(k) Plans, the only option would be to merge the plans but because this is a 403(b) Plan, it cannot be merged into the 401(k). Thanks!

Agree, the DC document likely states that the THM is 5% if there is a DB Plan. Always check the documents for both plans regarding the Top Heavy coordination. More than likely it is 5%.

If the employee worked on 12/31 and quit that day, then they were employed on 12/31 and due an allocation if that is what the allocation requirement is for that source of money.

Agree, if they never met eligibility that applies to both 401k and SHNEC

Yes, the difference is between the compensation used for allocation purposes and the compensation used for testing purposes and those do not need to be the same.

I am going to pose this a little differently for clarification because my understanding is that if you use a safe harbor match to satisfy the ADP Test that you cannot double dip and use those in the ACP Test with After-Tax contributions. Contribution Only Used Once.Amounts included in the ACR can be taken into account only once. Therefore, any amounts cannot be taken into account to the extent such contributions are used to satisfy any other ACP test, any ADP test, or the safe harbor requirements of the requirements for SIMPLE plans. Similarly, if a plan switches from the current year testing method to the prior year testing method, QNECs that are taken into account under the current year testing method for a plan year may not be taken into account under the prior year testing method for the next plan year. [Treas. Reg. section 1.401(m)-2(a)(6)(vi)](iii) Qualified matching contributions used to satisfy the ADP test. Qualified matching contributions that are taken into account for the ADP test of section 401(k)(3) under §1.401(k)-2(a)(6) are not taken into account in determining an eligible employee's ACR.(iv) Matching contributions taken into account under safe harbor provisions. A plan that satisfies the ACP safe harbor requirements of section 401(m)(11) or 401(m)(12) for a plan year but nonetheless must satisfy the requirements of this section because it provides for employee contributions for such plan year is permitted to apply this section disregarding all matching contributions with respect to all eligible employees. In addition, a plan that satisfies the ADP safe harbor requirements of §1.401(k)-3 for a plan year using qualified matching contributions but does not satisfy the ACP safe harbor requirements of section 401(m)(11) or 401(m)(12) for such plan year is permitted to apply this section by excluding matching contributions with respect to all eligible employees that do not exceed 4 percent (31⁄2 percent in the case of a plan that satisfies the ADP safe harbor under section 401(k)(13)) of each employee's compensation. If a plan disregards matching contributions pursuant to this paragraph (a)(5)(iv), the disregard must apply with respect to all eligible employees. So for this example, let's say the ADP Safe Harbor Match is 100% up to 7% (this satisfies the ADP SH but does not satisfy the ACP Test SH - matches on deferrals above 6% and in aggregate is more than 4%). In this example, the match in excess of 4% could be used in the ACP Test, but you could not use the full 7% because the first 4% is the amount necessary to satisfy the ADP Test.