ACP test - last day requirement for match contribution

[Guest irenes]

If your plan has a last day requirement for a match contribution, are the participants who are excluded from the match contribution on this basis also excluded from the ACP test?

[Richard Anderson]

Yes, unless the plan also allows post-tax contributions. The ACP test includes participants who are eligible to make post-tax contributions or who are eligible to receive a match during any portion of the plan year. This includes participants who are eligible, but choose not to defer or contribute.

[Guest mo again]

Those individuals can be left out of ACP testing completely, so long as the ACP component is able to pass 410(B) on its own with the last day employment requirement.

[Guest]

I'm not sure I would say they 'can' be excluded from the ACP test. They 'are' excluded from the ACP test.

(unless of course, as Richard pointed out that an after tax contribution is permitted- regardless of whether anyone has ever made one all are included)

for the 410(B) - if these individuals worked over 500 hours - they are treated as includable and NOT benefitting.

this could cause coverage to fail.

thus an amendment would be required, bringing them into the plan, but then they would receive a match and then be included in the test.