Definition of ADP Test Safe Harbor Contribution


ADP Test Safe Harbor Contribution means an Employer contribution that is used to satisfy the safe harbor methods permitted by Code Sections 401(k)(12) and 401(m)(11). The Administrator may allocate ADP Test Safe Harbor Contributions into either the Qualified Matching Contribution Account (if a Basic or Enhanced Matching Contribution is made) or the Qualified Nonelective Contribution Account (if a Nonelective Contribution is made). ADP Test Safe Harbor Contributions are nonforfeitable when made and are subject to the distribution restrictions of Section 4.2(d), except that no amount may be distributed on account of financial hardship.

Examples of ADP Test Safe Harbor Contribution in a sentence

Nothing in this paragraph precludes a Plan from first implementing an ADP Test Safe Harbor Contribution during a Plan Year so long as the requirements of applicable regulations are satisfied.
With respect to the ADP Test Safe Harbor Contribution made pursuant to Section 4.1(b), to each Participants Qualified Matching Contribution Account (if a Basic or Enhanced Matching Contribution is made) or Qualified Nonelective Contribution Account (if a Nonelective Contribution is made).
The ADP Test Safe Harbor Contribution shall be the Basic Matching Contribution set forth in 4.1(b)(1) below, which is intended as a Pension Protection Act (PPA) Qualified Automatic Contribution Arrangement (QACA).
Notwithstanding the above, for any Plan Year in which the ADP Test Safe Harbor Contribution and Notice requirements of Section 4.1(b) are met, the provisions of this Section of the Plan shall not apply.
Furthermore, in applying the ACP test, the Employer may elect to disregard with respect to all Eligible Participants (1) all Matching Contributions if the only Matching Contributions made to the Plan satisfy the ADP Test Safe Harbor Contribution (the "Basic Matching Contribution" or the "Enhanced Matching Contribution") and (2) if the ACP Test Safe Harbor is satisfied, Matching Contributions that do not exceed four (4%) of each Participant's Compensation.