LRM 94

[Bri]

Can I please just have everyone agree with this statement so that I can link to it to show the non-believers in my office?

The restriction on the number of allocation rates in a cross-tested plan was specifically dictated by LRM #94 and was solely applicable to get a prototype document approved during the EGTRRA cycle.  This has been removed for the PPA cycle.  And nothing in the 401(a)(4) regulations themselves even make mention of this, thus meaning PPA documents are not limited to the number of groups or rates available, nor are plans operating under them expected to comply with such a restriction when running 401(a)(4) tests.

Thanks

--bri

[Mike Preston]

Disagree.  Have to follow plan terms, even if those terms could have been drafted differently.

[Bri]

Our prototypes have always said each participant is his/her own group.  So if I want 35 different rates for all 35 different employees, I say I'm good....assuming I pass the usual testing.

[ETA Consulting LLC]

I agree with Bri. 

Good Luck!

[Tom Poje]

lrm94 was replaced by a later lrm. (see the last few pages of the enclosed for cross tested language)

unless you are using "fly-by-night prototype" I would be shocked that language limiting the number of allocation groups is in any PPA document, though I suppose it is possible, and if such language was actually checked then you would have to follow it and then be smart enough to find a different document.

but there is certainly nothing that says "oh by the way, even if you check each person is in his own group in the new ppa document, you have to also follow the old LRM which says you are limited to the number of groups you can create via this method"

 

lrm.pdf