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Showing results for tags 'cross test'.
Found 2 results
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Can SEP contributions be permissively aggregated for purposes of cross testing? I.e., Average Benefit Percentage Test, Average Benefit Test, and Gateway Minimum? The plan sponsor has both a SEP and a profit sharing plan in 2020 and the SEP is on an approved individually designed document. Thank you in advance.
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Hello Everyone! We have a new comparability plan with 1 YOS and monthly entry for 401(k) and SHNEC(3%) and 2 YOS and monthly entry for the PS. The plan is also top heavy. We separated out all the otherwise excludible employees and are left with non-excludible employees. Can I get someone’s opinion on the correct compensation to use for each of the 2 example employees below for these test calculations? Gateway GND 401(a)(4) ABPT 410(b) Participant A: eligible for 401(k) and SHNEC only 7/1. Annual comp is $20k, mid-year comp is $10k. They will need to get a THM of 3% on full year compensation. I'm fairly certain that this is $10k compensation used for all 3 tests. Participant B: eligible for 401(k) and SHNEC for the full year. Eligible for the PS 7/1. Annual comp is $20k, mid-year comp is $10k. The THM will be satisfied from the 3% SHNEC allocation. Thank!
