401k testing

[mehmgo]

hi we have a calendar year plan that had an employer matching safe harbor contribution for 2018, however they stopped the safe harbor match as of 11/15/18.  Doe the ADP and ACP test only need to cover the period from 11/16/18 - 12/31/18 or does it have to pass the testing for the whole year? thanks

[Kevin C]

For a suspension of the safe harbor match during the year, ADP/ACP testing must be done for the full plan year using the current year testing method. 1.401(k)-3(g)(1)(i)(E) & 1.401(m)-3(h)(1)(i)(E).

If the plan is terminating, we would need to know if it was in connection with a 410(b)(6)(C) transaction or if the employer has incurred a substantial business hardship 1.401(k)-3(e)(4).