Safe Harbor 401(k) and After Tax $

[Guest hyper]

Notice 98-52, Section VIII.F seems to require continued current year ACP testing for any after tax contributions made to a safe harbor 401(k) Plan. Is this correct ?

The plan will use the basic matching contribution formula to pass the safe harbor. I have never dealt with a safe harbor 401(k) plan with A T $ and just found this requirement to be odd.

Any comments are appreciated.

Thanks.

[Tom Poje]

yes, you have to test after tax contributions.

yes, you have to use current year testing.

you are free to include the basic match in the test if you so choose