414(s) test failures

[Guest phy401k]

I saw a previous post that stated that if the ACP test uses a safe harbor definition of compensation for the ACP testing that it is not necessary to perform 414(s) testing for the match. Is that correct? I have a plan that exempts overtime and bonuses from compensation for providing matching contributions. However, the ACP testing was completed based on total compensation and passes. Does that mean I don't have to test the compensation, even though the contributions are based on a non-safe harbor definition of compensation?

Thank you for your help!!

[Blinky the 3-eyed Fish]

Maybe. Sure you pass the ACP test but have you considered testing for BRF on the rate of match? If you have no problems there, then I can't think of a reason you need to test the plan compensation. You don't mention it, but I assume you pass ADP testing and have no other nondiscrimination testing to run.

[BG5150]

Does the document say specifically what compensation to use, or does it say any compensation that will pass 414(s)?

(Or does it matter? I always thought it should say in the doc which comp to use for testing)

[Blinky the 3-eyed Fish]

Every answer on BLink could be caveated with "check the plan document", so that is a given.

A document should absolutely not limit what compensation can be used for testing, but rather should have a general reference to 414(s). QDROphile will tell you what he thinks of a document that does otherwise.