abanky Posted July 11, 2007 Share Posted July 11, 2007 1.401(a)(4)-3©(3) --- "safety valve" I haven't been able to get any good explaination regarding this reg... anyone have any comments? Link to comment Share on other sites More sharing options...
ak2ary Posted July 11, 2007 Share Posted July 11, 2007 My take on it has always been that in the small plan universe, or in a plan that is designed to maximize the benefits of HCEs... if you need to use -3©(3) to pass 401(a)(4), you are not allowed to The safety valve exists primarily for large plans where a demographic anomoly causes a single HCE or a handful of HCEs to blow your test If your explanation of the circumstances for the facts and circumstances determination includes words like "Doctor" or "Lawyer" or "son of the owner"; I dont think you get far Link to comment Share on other sites More sharing options...
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