Safe Harbor 3% w/ Disc Match

[Guest North Meets South]

Hello to all. Can we have a Last Day Rule, 1000 hour requirement, and Vesting schedule on a discretionary match to satisfy the ACP testing requirement, when used in conjunction with the 3% Safe Harbor??

Our normal formula is 100% on the first 3% deferred plus 50% on the next 2% deferred. I know there are requirements of this discretionary matching (can't match on more than 6% deferred; HCE's cannot get more than NHCE's, etc., etc., etc.)

Thanks. One of us has been reading the CCH and is getting the rest of us confused. Have we been doing this wrong??

[Tom Poje]

no you can not have an allocation condition (other than excluding otherwise excludeble ees)

this was made clear when the final 401k regs were released a few years ago.

it was never intended that you could jave conditions for the the discretionary, hence the clarification when the final regs were released

you can have vesting schedules apply

[Guest North Meets South]

Thank you Tom.