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I am new to the issue of Cross Testing, but started my career in Pensions (Entry Age Normal..anyone?) and am now using this concept for my own SEP Plan. Can anypne point me to the latest Excel in the public domain, I can use to sort out the EBAR for a situation where there is a 401K and a SEP? Thanks in advance Ken.phillips@benefitscape.com

Good afternoon, This is a "what is your shop doing?" question. Some years back, before each participant could be in his or her own group for new comparability contribution allocations, groups were specified in the plan document. For example "partners, family members of partners, supervisors, clerical staff, the office manager, and Top Heavy minimum participants". Each year, we (where I worked at that time) did a document something like a resolution of the board of directors approving a specific dollar amount of contributions per group for the year in question. We got it signed by the employer and provided them with a copy for their records. With the advent of each person being in his or her own group, those resolutions of the board of directors went by the wayside. The employers I worked for stopped doing them. My current employer was wondering if that's really okay and wants to know what the rest of you are doing. I did look it up in Sal Tripodi's bible, and found "Written direction could take the form of a separate letter, the acceptance of a proposed allocation report that shows how the nondiscrimination test would be satisfied, or an entry in the memo section of the contribution check." I believe my predecessor in my current position was using the part in italics above to justify not doing the resolution anymore. We run the numbers, we test, we send the employer a proposed contribution allocation, he accepts it and makes the deposit, say, at John Hancock in accordance with the contribution report. Later the employer gets that contribution report and the accompanying testing in the annual report for his archives. With that, my predecessor said that was enough, and there was no longer any need for further documentation. What are the rest of you doing? Thank you as always.

Hi to All, We have a 401(k) plan for a non-profit entity with a new comparability formula for the profit sharing. The intention in the design was to have each participant in his own group and to vary the contribution level at will. There are no HCEs and of course no "owners". Can the employer give 10% of pay to the 3 oldest employees and nothing to the 3 youngest employees? Can the contribution be literally whatever they feel like giving to each person? We are so accustomed to the world of small closely held companies that it's hard to think outside the parameters of normal non-discrimination testing. Our first instincts are to say "Oh no, you can't do that!" but perhaps you can! Any thoughts? Thank you as always.

Plan has 401(k), Safe Harbor Match, and Class Based Allocation for Profit Sharing. 1,000 hours and last day required to receive the Profit Sharing. When I run rate group testing, two employees who terminated before the end of the year show up. They both worked 1,000 hours, but they are not benefiting because they terminated their employment. I am having a brain freeze. If these employees are not benefiting and are receiving no employer contribution, why would they be included in the rate group testing? Is it because they do not meet a statutory exclusion? Thanks!

When applying the maximum employer contribution amount to HCEs (60,000 for 2017 with catch-up), are the deferral amounts deducted from that maximum to equal the actual amounts available for employer contributions?

I have a client that wants to excluded commission only sales people from benefiting. The plan passes coverage as some of these sales guys are HCE's. The plan also passes the average benefits tests and the rate group tests. The only test that is failing is the gateway test. My question is do we need to benefit the lower income sales people at 5% to meet our gateway requirements?

I have a safe harbor new comparability plan. They are unable to pass average benefits test due to one of the owner's 90% deferral rate. Therefore new comparability isn't working. Can we shift to an integrated format and bypass the average benefits test? We pass coverage, etc.