ADP safe harbor and shifting - Plan is a ADP SH only. The match still has to be ACP tested. The plan normally fails the ACP test. Could the plan use the shifting testing method from the deferral percentages and add them to the ACP test to help it pass or decrease the failure?

ADP safe harbor and shifting - the plan is a ADP SH only. The match still has to be ACP tested. The plan normally fails the ACP test.

Could the plan use the shifting testing method from the deferral percentages and add them to the ACP test to help it pass or decrease the failure?

 No. Regulation section 1.401(m)-1(a)(6)(ii) provides that "Elective contributions may be taken into account for the ACP test only if the cash or deferred arrangement under which the elective contributions are made is required to satisfy the ADP test in §1.401(k)-2(a)(1)". The ADP safe harbor is not included in §1.401(k)-2(a)(1), it is in 1.401(k)-3.

§1.401(m)-2 ACP test.

(a) Actual contribution percentage (ACP) test

(6) Qualified nonelective contributions and elective contributions that may be taken into account under the ACP test. Qualified nonelective contributions and elective contributions may be taken into account in determining the ACR for an eligible employee for a plan year or applicable year, but only to the extent the contributions satisfy the following requirements--

(ii) Elective contributions taken into account under the ACP test. Elective contributions may be taken into account for the ACP test only if the cash or deferred arrangement under which the elective contributions are made is required to satisfy the ADP test in §1.401(k)-2(a)(1) and, then only to the extent that the cash or deferred arrangement would satisfy that test, including such elective contributions in the ADP for the plan year or applicable year. Thus, for example, elective deferrals made pursuant to a salary reduction agreement under an annuity described in section 403(b) are not permitted to be taken into account in an ACP test. Similarly, elective contributions under a cash or deferred arrangement that is using the section 401(k) safe harbor described in §1.401(k)-3 cannot be taken into account in an ACP test.