Question: A Section 401(k) plan does not have to satisfy the ADP and ACP tests if it meets one of the safe harbor provisions. Which of
A Section 401(k) plan does not have to satisfy the ADP and ACP tests if it meets one of the safe harbor provisions. Which of the following statements regarding the safe harbor provisions is FALSE?
A) a plan that satisfies the safe harbor provisions is not subject to the top-heavy rules.
B) mandatory employer contributions under the safe harbor provisions may be subject to a 3-year cliff vesting requirement.
C) an employer may satisfy the safe harbor provisions
D) an employer may satisfy the safe harbor provisions by making certain nonelective contributions for all eligible employees.
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