terminate 401k s/h

[jkharvey]

The plan terminated 10/15/2011. The termination was not for hardship or other reason that would preclude ADP/ACP testing. If I understand this correctly, the ER must still make the SH matching contribution. Is that SH match subject to ACP testing?

[Tom Poje]

the basic logic is as follows, a little extra just to see the flow of things

1.401(k)-3(e)(1) - safe harbor must be 12 months

3(e)(2) - first year of plan is an exception to the rule, could be less than 12 months

3(e)(3) plan could be short plan year if year before and year after are 12 months

3(e)(4) final plan year could be less than 12 months if

3(e)(4)(i) plan is terminated, treating the termination "as" a reduction/suspension of matching contributions

(in other words, this, as best as anyone has been able to figure, applies to both a safe harbor match or a safe harbor nonelective)

in other words, follow the rules of 1.401(k)-3(g)

3(g)(iv) ADP satisfied using current year testing

3(g)(v) plan satisfies safe harbor requirements through the date of amendment (termination)

the corresponding reg in regards to a match is

1.401(m)-3(h)(iv) ACP test wil be satisfied

3(h)v) plan satisfies safe harbor requirements through the date of amendment (termination)

so based on all that I say the answer is yes to your question.