Management Service Organization and Safe Harbor

[Chippy]

A management service organization with multiple entities under them adopt a safe harbor 401 k.    Are all adopting employers of the plan required to make the 3% SHNEC every year, or do the individual employers have a choice?   

[CuseFan]

If this is an ASG and treated as one plan with one ADP test (or safe harbor exemption) then yes, 3% SH must be made for all eligible employees every year.

[Chippy]

thank you.   It is a ASG, and that's what I thought.