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Table of Contents›XX. Safe Harbor 401(k) (including QACA)

Section 4. ACP Test Safe Harbor

0325 Publ 6087 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States

4.1 ACP Test Safe Harbor Matching Contributions

(a) In addition to the ADP Test Safe Harbor Contributions described in Section 3.1 of this article, the Employer will make the ACP Test Safe Harbor Matching Contributions, if any, indicated in the adoption agreement for the Plan Year.

(b) ACP Test Safe Harbor Matching Contributions will be vested as indicated in the adoption agreement, but, in any event, such contributions shall be fully vested at normal retirement age, upon the complete or partial termination of the Plan, or upon the complete discontinuance of employer contributions. Forfeitures of non-vested ACP Test Safe Harbor Matching Contributions will be used to reduce the Employer's contribution of such ACP Test Safe Harbor Matching Contributions.

(Note to reviewer: Other language specifying the use of such forfeitures may also be acceptable. If forfeitures are used as anything other than ACP Test Safe Harbor Contributions, the plan will not be exempt from Code § 416. See Code § 416(g)(4)(H).

A plan may provide that forfeitures may be applied toward Qualified Nonelective Contributions and/or Qualified Matching Contributions, including ADP Test Safe Harbor Contributions and ACP Test Safe Harbor Contributions. See Treas. Reg. §§ 1.401(k)-(6) and 1.401(m)-5. See also CODA LRMs XI and XIV.)

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▸Contents — 0325 Publ 6087 (PDF)
0325 Publ 6087 (PDF)

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