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Showing results for tags 'ADP testing'.
Found 2 results
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I must be missing something, please let me know. What would prevent an owner with 2 businesses from having a plan for each business, with identical plan provisions, both of them safe harbor matching plans. Then paying himself $225,000 from each company, contributing $9,000 in deferrals to each plan and getting a $9,000 SH match from each plan? It doesn't seem like he should be able to get more than $10,600 total match ($265,000 * 4%), but I don't know what is stopping him in this scenario. The plans could be combined for coverage and ADP testing and would pass. top heavy wouldn't be an issue if there are no additional employer contributions. So is this permissible? Obviously you could argue why go to all this trouble and expense of 2 plans just to get an extra $7,400 matching contribution... and maybe that is the answer (?)
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I am working on a plan that failed the ADP test for 2014. 2 HCEs need refunds. They terminated in October and took their assets out in December 2014. Both rolled their assets over to IRAs. So what do we do to "correct" the test failure? let these former participants know that they need to take $x out of their IRA as an ADP refund?
