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A plan was frozen 2017 with no accruals that year. Doing a 401a26 test under average accruals to date as of 1/1/2017 it passes for 2017. The plan is formally terminated in 2018 and paid out. Does the plan have to pass 401a26 for 2018?

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There is an exception in 1.401(a)(26)-1(b)(3) for underfunded frozen DB plans. If your plan meets the requirements of that section then it would be exempt from 401(a)(26) for the year.

Otherwise, see 1.401(a)(26)-2(b).

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Extending this issue: one person DB plan was frozen in 2013.

New employee hired in 2015, and would be eligible in 2017 if plan not frozen.

No intent to provide benefits for new employee.

Does this comply with 401(a)(26)?

A prior thread says that you need to comply.  The one-person plan is top-heavy, but owner is getting no new accruals.

So the issue appears to be: No new participant, new participant with a minimal accrual, or new participant with topheavy accrual?

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SoCalActuary, as you mention, prior posts seems to indicate that you would need to bring in this employee and thru amendment give him .005 pr yr of participation to pass 401(a)(26). As the  fact that no HCE is benefiting only helps for 410(b) (70% of NHCE) , however, for 401a26 that requires the plan to cover at least of 40% (or min. 2 employees) of all eligible employees. With exception of an underfunded frozen PBGC Plan. Although if someone can say otherwise- that you can keep the plan frozen with the owner only, It would make things a lot smoother.

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