Basic Matching Contribution Formula. The Basic Matching Formula provides a Matching Contribution on behalf of each eligible Employee who is making Elective Deferrals or ▇▇▇▇ Elective Deferrals to the Plan in an amount equal to 100% of the amount of the Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals that do not exceed 3% of the Employee’s Compensation and 50% of the amount of the Employee’s Elective Deferrals or ▇▇▇▇ Elective Deferrals that exceed 3% of the Employee’s Compensation but do not exceed 5% of the Employee’s Compensation. A Plan satisfying the ADP Safe Harbor using the Basic Matching Formula automatically satisfies the ACP Test, if no Voluntary After-tax Contributions or other Matching Contribution is made under the Plan.
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Sources: Defined Contribution Plan, Defined Contribution Plan, Defined Contribution Plan (1st Constitution Bancorp)
Basic Matching Contribution Formula. The Basic Matching Formula provides a Matching Contribution on behalf of each eligible Employee who is making Elective Deferrals or ▇R▇▇▇ Elective Deferrals to the Plan in an amount equal to 100% of the amount of the Employee’s Elective Deferrals or ▇R▇▇▇ Elective Deferrals that do not exceed 3% of the Employee’s Compensation and 50% of the amount of the Employee’s Elective Deferrals or ▇R▇▇▇ Elective Deferrals that exceed 3% of the Employee’s Compensation but do not exceed 5% of the Employee’s Compensation. A Plan satisfying the ADP Safe Harbor using the Basic Matching Formula automatically satisfies the ACP Test, if no Voluntary After-tax Contributions or other Matching Contribution is made under the Plan.
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