Safe Harbor nonelective with after-tax contributions

[Scuba 401]

if a safe harbor nonelective plan allows after-tax but does not have a match, does it have to pass the ACP test?

[ETA Consulting LLC]

Of course it does.

Good Luck!

[austin3515]

Which is why the people in your plan who want to take advantage of the new after-tax to Roth conversions won't be able to :)

[CuseFan]

exactamundo - that trick only really works with solo plans

[spiritrider]

I wouldn't say it only works with solo plans. It really depends on the census and the propensity of NHCEs to take advantage.

The last plan I had at a mega-corp did not match after-tax contributions and had to limit HCEs to 5% after-tax contributions. Cause and effect, I have no idea.

However, allowing a match to apply to after-tax contributions might influence NHCEs enough for the plan to pass testing or at least allow some reasonable contribution percentage for HCEs.