BG5150 Posted January 6, 2022 Share Posted January 6, 2022 I know participant statements must get a blurb if the PS is allocated using a permitted disparity formula (integrated with SS). What if the formula is grouping method and subject to testing? The contribution COULD be allocated using permitted disparity. Is that same disclosure needed on the statements in that case? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
C. B. Zeller Posted January 6, 2022 Share Posted January 6, 2022 I would say no. The allocation method is whatever it says in the plan document, presumably individual groups if it's new comp. Just because you choose to test the allocation by imputing permitted disparity, does not mean that the allocation is based on permitted disparity. John Feldt ERPA CPC QPA and Bird 2 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...
BG5150 Posted January 6, 2022 Author Share Posted January 6, 2022 True dat. I didn't think it was needed. Thanks. Bill Presson 1 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
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