Jump to content

401k Match or Nonelective


Recommended Posts

it's contingent on a salary deferral, still think it's a match. i think the only way it's not a match is if the 5% deferral is mandatory (possibly as a condition of employment) - you have to do 5% to be in the plan, can't do anything less.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

Link to comment
Share on other sites

Maybe you can think of the match as a tiered match as follows:

  • Deferrals between 0-5% get 0% match
  • Deferrals 5% and above get 7% match

Then you would test the match in the ACP test, and in addition you would need Benefits Rights and Features test to deal with tiers of the match.

 

Link to comment
Share on other sites

Thanks so much.  That is what I thought.  The fail the ACP test but we could pass the 401(a)(4) test.  The prior bundled vendor did not do anything.  We just picked this plan up.  It is a fairly large plan and they are going to be surprised when I tell them we are going to have some refunds to deal with in the next four weeks.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...