Guest KD40 Posted February 11, 2004 Posted February 11, 2004 I have a plan that is looking to pass the ADP test and want to classify some of the match as a QMAC, and thus test up to $400 of the match as a QMAC for each eligible NHCE in the ADP test. At the same time, they do not want to move the HC's $400 to the ADP test and leave that in the ACP. Can they do this?
Brian Gallagher Posted February 12, 2004 Posted February 12, 2004 Our prototype allows for QMAC's to be given soley to NHCE's so I would refer you back to your Plan Document. Remember: two wrongs don't make a right, but three rights make a left.
Mike Preston Posted February 13, 2004 Posted February 13, 2004 If what you are talking about is merely recharacterizing a portion of the existing match, then my research tells me that you can't do it unless there are no HCE's that received a matching contribution for the year in question. Essentially, you end up with a benefits, rights and features violation because the regular match that you have left after you move your $400 per capita to QMAC no longer satisfies the definition of a non-discriminatory match.
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