Unique 401(k) Match formula. Unique testing?

[Guest RJM]

Calendar Year 401(k) Plan. Deferrals and Match only. Employer wants to calculate match as follows:

1) quarterly computation period, i.e, based on deferrals by Participant during quarter;

2) The employer will make matching contributions only to participants employed at the end of each plan quarter.

3) Employer will only match elective deferrals not withdrawn during the quarter.

Does this plan design require additional testing beyond the normal annual ACP or Percentage Coverage Test?

[MWeddell]

It probably requires that it be tested as a benefit, right, or feature because the match is not currently available to all employees eligible to participate in the 401(m) portion of the plan. However, sounds like it should pass fairly easily unless your plan is just barely passing 410(B) testing to start with or there's an extraordinarily high level of turnover, plus if the test passes easily then you might be able to run it only once every 3 years.