Rate of Match

Good Morning -

It is that time of year for questions on ADP/ACP Testing failures.  One of these years I will get this right.  Lets say you have both an ADP and ACP Testing failure.  Participants are 100% vested in the match.  Only one HCE is due a refund which is distributed out to the participant as an excess contribution.  My question goes back to the rate of match which I still cannot understand.  In this example, the HCE earned $200,000 in plan compensation and deferred $18,000.  The Plan provides a match of 100% on the first 3% of compensation.  The Plan contributed $6,000 to the HCE's account.  HCE receives a refund of $1,000 for the ADP failure and $500 for the ACP failure.  With the refund, the HCE now shows $17,000 of deferrals in the plan and a match of $5,500.  Is there an issue here with rate of match?  If not, then when is it an issue? 

Thank you!

Since is his deferrals are still above 3% of pay after the refund, you are fine.

Thank you!  I thought so....but then thinking often gets me into trouble.

yes, but at least to Descartes you exist. In my case there is much in doubt.

That reminds me of a joke I heard....so, Descartes walks into a bar and orders a drink.  When he finishes his drink, the bartender asks him if he would like another.  Descartes replies, "No, I think not" and disappears in a puff of logic.

51 minutes ago, Tom Poje said:

yes, but at least to Descartes you exist. In my case there is much in doubt. (emphasis added)

Oddly, while the famous line is, "I think therefore I am" his proof was related to doubt.  His proof was if you doubt you exist then there must be something doing the doubting.  So the "think" he was referring to in the line was doubting as the type of thinking that proves you exit 

in my case it was closer to

"I stink, therefore I know I exist

Of course, in my much younger days, I believed the quote to be...

"I drink, therefore I am...."