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After Tax - safe Harbor for Testing


Guest mkelly

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Guest mkelly
Posted

A client is safe harbor for testing

They have after tax.

Can we include the safe harbor match in the ACP test ? Or must we only include the after tax in the ACP test?

Posted

my understanding is that you can include the matching contributions as well. remember, the safe harbor rules simply say you don't have to test, there is nothing to say that you can't, if you want to. you would have to test use current year method if I am not mistaken.

Guest Jim Kais
Posted

Generally, you only need to test a "premium match" or in other words, the match over and above the safe harbor minimum. After-tax contributions will have to be tested within 401(m).

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