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401k Match or Nonelective

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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


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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.


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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.

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