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Cross Tested, Gateway and Component plans


rcline46

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Controlled group, 2 companies, new comparability plan.  Must use component plans (restructuring) to pass a4 testing.

So far so good - oops gateway rears up and says you must give me to those involved in the cross-testing.  In the cross-tested, restructured plan, those who are in the OTHER plan are treated as if their contribution is zero - therefore no gate way.

In the OTHER plan, testing on a contributions basis, there is no need for gateway. 

So is this true - we can avoid giving some people only their real contribution and not the gateway.

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no, before getting to component plan testing you have to pass gateway

1.401(a)(4)-9(c)(3)(ii)

 

think of this way. you want to do nondiscrim testing which in some way involves cross testing.

so you want to  CROSS into that magic land, but there is a huge impenetrable hedge full of nasty thorns as well on one side. even if you could get to the hedge, you would first have to get over the moat full of nasty slimy things (including Flint water runoff). You tried testing on an allocation basis (which would avoid a gateway) but Gandalf is standing there saying "You shall not pass". So your only choice is to go through that magic GATEWAY. (first and foremost, before proceeding any farther down the road to cross testing land)

hmmm. my copy of the regs says "Lord of the Things", but at least I can slightly understand it.

 

 

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"...the minimum allocation gateway of 1.401(a)(4)-8(b)(1)(iv) and the minimum aggregate allocation gateway of paragraph (b)(2)(v)(D) of this section cannot be satisfied on the basis of component plans. "

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no, never read that. had a friend that had a copy, I think I looked at one or 2 pages and decided that type of 'humor' was not my style. as I recall, somewhat crude and vulgar.

years ago I recall Red Skelton at the close of an act saying "You laughed and had a good time. And I didn't have to swear, cuss or use foul language"

will always admire him for that.

(I did try to liven up my attempted response to the question a little and make it easier to remember the next time)

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