Safe Harbor Plan with additional non- safe harbor Match

[PMC]

Safe harbor plan uses a matching formula which satisfies both ADP and ACP safe harbor. The plan also includes an additional Match which is "not" intended to satisfy the ACP safe harbor. This additional match has a last day requirement attached to it. Is this permissible under the '04 k/m regs. and just test this under ACP?

I know the new regs. clarified the fact that an additional match that is intended to satisfy ACP safe harbor can not have an hours or last day requirement. But what about the additional match that is not intended to satisfy ACP safe harbor? Seems odd that a nonelective safe harbor plan can have a match with the restrictions and test under ACP but this would be prohibited.

[Tom Poje]

I read VIII F 3 of Notice 98-52

(and now in the regs as 1.401(m)-2(a)(5)(iv) to say you have 2 choices.

Test all match or

exclude match does not exceed 4% of comp for the ACP test.

ADP test is safe harbor so no test.