Tinman Posted June 12, 2020 Share Posted June 12, 2020 Below is the allocation formula for a profit sharing only plan provided to us by a plan sponsor. The tiers are based on job classification. The Tiers range from Tier 1 = trainees to Tier 9 = those who report directly to the board of directors. What testing is required here - general testing? Link to comment Share on other sites More sharing options...
Belgarath Posted June 12, 2020 Share Posted June 12, 2020 Short answer, yes. Could get pretty complicated depending upon what you are ultimately doing - testing on an allocations basis, or cross testing, possible gateway, top heavy issues, etc. - you might be restructuring, whatever. Could pass easily, could be a nightmare... Link to comment Share on other sites More sharing options...
Larry Starr Posted June 12, 2020 Share Posted June 12, 2020 4 hours ago, Belgarath said: Short answer, yes. Could get pretty complicated depending upon what you are ultimately doing - testing on an allocations basis, or cross testing, possible gateway, top heavy issues, etc. - you might be restructuring, whatever. Could pass easily, could be a nightmare... Absolutely correct; I do worry about OP asking IF this is going to be subject to general testing, as that is a very basic issue in this situation that should be obvious. What else could it be? Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com Link to comment Share on other sites More sharing options...
Tinman Posted June 12, 2020 Author Share Posted June 12, 2020 Thank you both for your response - I am aware general testing applies, I guess I was wondering what else might need to be looked at, if anything. Link to comment Share on other sites More sharing options...
Larry Starr Posted June 12, 2020 Share Posted June 12, 2020 3 hours ago, Tinman said: Thank you both for your response - I am aware general testing applies, I guess I was wondering what else might need to be looked at, if anything. Super! Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com Link to comment Share on other sites More sharing options...
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