Can the Safe Harbor 401(k) plan use the Safe Harbor 3% nonelective contribution (NEC) to satisfy both the ADP and the ACP tests?
Reviewed 07/03/08, Rev. 01/27/03

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 tests will be satisfied by the Safe Harbor 3% NEC.