If the safe harbor guaranteed nonelective contribution is stopped during mid-year in 2009 as permitted under the new proposed regulations, may prior year testing be used for the ADP/ACP test for 2009?
Rev. 07/23/09; E-mail Alert 2009-11

No. A safe harbor 401(k) is deemed to pass testing on the “current year” method. If a safe harbor contribution is reduced or suspended midyear of 2009, the ADP/ACP testing must be performed using the current year method.

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