Guest gaham Posted January 31, 2012 Posted January 31, 2012 I have an employer who is contemplating converting its non-safe harbor 401(k) plan to a QACA. This employer has always had a higher match rate for eligible employees whose annual comp is below a specfic dollar amount (let's say $30,000) than those making more. The current match rates for either group exceed the minimum rates required for a QACA and appear to me to be otherwise compliant with the enhanced match requirements. The only unique aspect of their formulas is that the match rate for the very lowest paid NHCEs is better than the match rate for the higher paid NHCEs and all HCEs. Anyone see a problem with maintaining these differing match rates under a QACA?
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