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Showing results for tags 'db\dc combo plan'.
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I have a Cash Balance Plan that provides a substantial benefit for most of the NHCE's. The Average DB Allocation Rate for the NHCE's is 3.5%. At least one of my HCE's has an Allocation Rate in the Profit Sharing Plan of 15%. The Average Benefit Test and Rate Group Tests pass with no problem when I provide a Profit Sharing Allocation of 4.5% to the NHCE's. Is the minimum gateway for the Profit Sharing Plan still 5% based on my one HCE at 15% in the PSP. I understand that the DB/DC gateway minimum increases from 5% to 7.50% but can my DB offset drop what would have been a 5% Profit Sharing Gateway to a 4.5%. Sorry if this question has already been answered. Thanks for your help.
