safe harbor match + discretionary match

[Santo Gold]

I'm having trouble understanding a portion of the final 401k regs concerning the use of the ACP safe harbor: If a plan uses an additional match (in addition to the basic safe harbor match), and that additional match has a 1000 hour/last day requirement, is it just the additional match that is subject to the ACP test, or is it that the additional match PLUS the basic safe harbor match is now subject to the ACP test.

Thanks

[Tom Poje]

yes

ok, 1.401(m)-2(a)(5)(iv) 2nd sentence says

A plan that satisfies ADP safe harbor requirements of 1.401(k)-3 for a plan year using qualified matching contributions

(this would be the safe harbor match)

but does not satisfy the ACP safe harbor requirements

(e.g. suppose you had an enhanced match greater than 6%)

is permitted to apply this section

(the ACP test)

by excluding matching contributions with respect to all eligible employees that do not exceed 4% of each employees compensation. If a plan disregards matching contributions, the disregard must apply to all eligible employees.

I read that as saying you can run your ACP test with the Basic match or without.

such a deal.