Employer match ACP test - skipped year

[legort69]

If applying the prior year method for ADP/ACP testing, if a plan gives a match during 2002, skips the match for 2003, and recommences the match for 2004, does that imply that any match received by the HCEs is going to automatically fail the test if they receive an allocation?. Sounds unfair to me for the HCEs. I tested a plan and I shifted to pass, but was not sure if thats the only way without going current.

[austin3515]

That is why no one in their right mind uses prior year testing with a discretionary match...

Luckily, you can change to current year testing at any time which might not be a bad idea. I just did some research and found that the IRS has never forbid amending the plan now for 2004's test...