swam Posted March 15, 2024 Posted March 15, 2024 Hello All, one of plan has After tax contribution and there are allocation conditions for match (1000 hours for Active & last day requirement). In ACP test do we need to include all, irrespective of the allocation conditions as everyone is eligible to make after tax contributions which are tested under ACP test. Thanks!
Bri Posted March 15, 2024 Posted March 15, 2024 You understand it correctly - the ACP test includes anyone eligible for either the match or after-tax arrangement, so if they all *could* have done after-tax, they're in. Luke Bailey and CuseFan 2
justanotheradmin Posted March 15, 2024 Posted March 15, 2024 With that fact pattern, does everyone need to be included in the ACP test if no one made a voluntary after-tax contribution for that specific year? I'm a stranger on the internet. Nothing I write is tax or legal advice. I'd like a witty saying here, but I don't have any. When in doubt, what does the plan document say?
Bri Posted March 15, 2024 Posted March 15, 2024 Yes, you're going to have lots of zeros if they did no after-tax and also got no match (even if their lack of match was a consequence of a last day/1000 hours thing - THAT is what could otherwise get people out of the ACP test, if there weren't the after-tax component)
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