Safe-Harbor
Q. Can the Safe Harbor 401(k) plan use the Safe Harbor 3% non-elective contribution (NEC) to satisfy both the ADP and the ACP test? Rev. 01/27/03
A. If the discretionary match formula does not exceed 4% of compensation and there is no match of deferrals in excess of 6% of compensation, both the ADP and ACP test will be satisfied by the Safe Harbor 3% NEC.