Jump to content

operational compliance versus controlled group testing?


Recommended Posts

Suppose we have three members of a controlled group cos X,Y and Z. All three have a standardized prototype profit sharing plan; the adoption agreement states that all employers participate in the plan . Each plan has a different allocation formula, one is prorata, the other fixed and the third integrated. Can each employer X,Y and Z allocate a discretionary amount  to just its employees based on its plan's allocation formula and then general test all the employees together for coverage and nondiscrimination?

Link to comment
Share on other sites

Exactly, you have three plans with all employees in all three plans. Whether X, Y or Z can declare and allocate a PS contribution to their intended plan only depends on the terms of the respective plans.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...