Draper55 Posted July 2, 2019 Share Posted July 2, 2019 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 More sharing options...
JackS Posted July 2, 2019 Share Posted July 2, 2019 I think your testing is sound but they are not following the terms of the plan docs. Amend them to Non-Std or VS docs and properly exclude each entity the other plans. Link to comment Share on other sites More sharing options...
CuseFan Posted July 3, 2019 Share Posted July 3, 2019 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 More sharing options...
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