Forgot to submit safe harbor match for an hce

[R. Butler]

Plan sponsor forgot to submit the 2009 safe harbor match due to one hce. If they submit now will that be subject to 401(a)(4) testing? My inclination is that it will be since we are more than 12 months past the end of the plan year.

Thanks in advance for any guidance.

[movedon]

Are you suggesting that the contribution would need to be tested as a current year contribution? I'd say no - it's a corrective contribution under SCP for a previous plan year and applies to that previous plan year in every respect (except the deduction). To require the contribution to be tested as a current year contribution would (conceivably) require additional contributions disproportionate to the scope of the original failure, and really wouldn't put the plan in the same place it would have been in had the failure not occurred. Plus, it sounds hard, so it can't be right.