McKay Hochman

	Q.	A safe harbor 401(k) satisfies the safe harbor ADP and ACP tests with a 3% nonelective contribution. If this plan has a fixed rate of match written into the plan document that provides a match of more than 4% of compensation, will it still satisfy the ACP safe harbor?

	A.	As long as the matching formula does not match deferrals that exceed 6% of compensation, the match will satisfy the ACP safe harbor. However, if the matching formula was discretionary, there would be an allocation limit of 4% of compensation for the match to satisfy the safe harbor.