Safe Harbor 3% non elevtive with additional match

[Richard Anderson]

The plan meets ADP and ACP safe harbor with 3% non-elective safe harbor contribution.

The plan also has a mandatory 15% match on the 1st 6% deferred. Can this match have a last day requirement and still meet ACP safe harbor with the 3% non-elective contribution.

Thanks.

[wsp]

The plan meets ADP and ACP safe harbor with 3% non-elective safe harbor contribution.

The plan also has a mandatory 15% match on the 1st 6% deferred. Can this match have a last day requirement and still meet ACP safe harbor with the 3% non-elective contribution.

Thanks.

No, final 401k regs say ACP test shall apply for years where the allocation requirements are required to be satisfied; even if 3% is being provided.

[Tom Poje]

I'd go even further to make a correction on the initial statement.

A plan meets the ADP safe harbor by providing the 3% SHNEC.

at that point in time the ACP is not satisfied. if no match is made, there is no ACP test, so the ACP test becomes a moot point. but the 3% SCHEC does not satisfy ACP safe harbor.