Election not to participate in 403(b) plan and testing.

[Guest]

It appears that if a participant elects out of a 403(B) plan, he or she is included in coverage testing. Are they also included in ACP testing?

[Carol V. Calhoun]

For what purpose are you doing ACP testing? It would not be required for salary reduction contributions to the 403(B) plan itself, and it would not be required at all for a 403(B) plan of a governmental employer. Does the same employer (or a member of its controlled group) have a 401(k) plan, or is it making matching contributions?