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Showing results for tags 'ACP Safe Harbor Amendment'.
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ADP safe harbor contribution requirement is being satisfied through the 3% nonelective contribution. Plan also allows for ACP safe harbor match - fixed formula, $1-for-$1 up to first 3%, $.50-on-the-$1 on next 3%. Employer wants to amend the match formula to reduce the formula to just $1-for-$1 up to first 3%. The ACP safe harbor match is subject to a vesting schedule (not 100% vested). It seems to me that this type of amendment is expressly allows under Treas. Reg. Section 1.401(m)-3(h), which provides that a Section 401(m)(11) safe harbor match may be reduced or amended during the Plan Year. But, Sal's book states that an ACP safe harbor matching formula may not be modified during the plan year. This just seems to me to be contrary to the express language in the Treas. Reg. Any thoughts, help on this is appreciated. Thanks.
