Discontinue add'l fixed match in SH plan

[Guest GandJ]

Employer maintains SH plan with basic SH match, as well as fixed and discretionary matches that satisfy ACP safe harbor.

ER wants to discontinue fixed match. If plan is amended and timely notice provided to eliminate fixed match mid-year, e.g., 7/1/06, and fixed match is provided on deferrals from 1/1/06 – 6/30/06, will the fixed match be subject to ACP testing?

[MWeddell]

All match for that plan year will be subject to ACP testing, along with any employee after-tax contributions.

[Guest GandJ]

Employer maintains SH plan with basic SH match, as well as fixed and discretionary matches that satisfy ACP safe harbor.

ER wants to discontinue fixed match. If plan is amended and timely notice provided to eliminate fixed match mid-year, e.g., 7/1/06, and fixed match is provided on deferrals from 1/1/06 – 6/30/06, will the fixed match be subject to ACP testing?