How to Handle Match Formula

[mming]

A plan has a 100% match on the first 6% of comp.  If I recall correctly, a formula can be considered safe harbor if you contribute a match only based on the first 6% of comp, but only if that amount is less than 100% of the first 4% of comp.  That would make this match on the first 4% of comp safe harbor, and the match on the next 2% a fixed non-SH match.  Since there's a portion that's non-SH, the plan would be subject to ADP and ACP testing - do I have all of this correct?  Would the ACP testing be done using the entire match or only the non-SH portion, i.e., the amount based on the 4% - 6% of comp? Thanks in advance for any assistance. 

[WCC]

2 hours ago, mming said:

do I have all of this correct? 

No. A match of 100% on the first 6% satisfies the ADP and ACP safe harbor (assuming no allocation conditions, vesting rules, notice requirements, etc. are satisfied). The 4% rule you reference comes into play when a discretionary match is funded in addition to a safe harbor formula. If there is a discretionary match in addition to a safe harbor match, then to satisfy ACP safe harbor, the match cannot take into account more than 6% of pay and the match contribution cannot exceed 4% of pay. 

[John Feldt ERPA CPC QPA]

And the plan must have the safe harbor provisions. It is not considered safe harbor if the plan does not say it is safe harbor.