Dougsbpc Posted October 22, 2021 Share Posted October 22, 2021 Suppose you have two related companies where a controlled group exists. Each of these companies sponsor a profit sharing plan that provides a uniform contribution which is the same for each plan. No testing issues. Now they want both plans to be cross-tested. Since they have a controlled group, both companies will need to be tested as one. It actually looks like the plans will pass the general test. One problem. One company and plan have a 12/31 year end and the other company and plan have a 10/31 year end. How is the cross-testing done with two plans that have different year ends? Have never run into this issue in all these years. Thanks. Link to comment Share on other sites More sharing options...
Mike Preston Posted October 22, 2021 Share Posted October 22, 2021 Must test separately. Luke Bailey 1 Link to comment Share on other sites More sharing options...
C. B. Zeller Posted October 22, 2021 Share Posted October 22, 2021 Mike is correct, see 1.410(b)-7(d)(5). However, you still need to determine how many participants in plan A are are non-excludable under plan B and vice-versa, since they will be included in the denominators of your coverage tests. If both plans cover any key employees, be careful with your top heavy determination dates. Luke Bailey 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
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