Guest Roxanne Walters Posted February 26, 2002 Posted February 26, 2002 If Carve- out is used to pass ADP/ACP do you have to go back and re-test 410(B) using carve-out also?
Mike Preston Posted February 26, 2002 Posted February 26, 2002 I'm pretty sure the answer is yes. However, I'm not entirely sure what you mean by carve out. Care to explain?
Guest Roxanne Walters Posted February 27, 2002 Posted February 27, 2002 By carve out I mean using the statutory minimums to help pass the ACP test. I have a plan with immediate enty and no age or service requirement to receive an employer matching contribution. The plan fails ACP but if I apply the statutory Minimums of Age 21 and 1 year of service, the plan will pass ACP. My question: Is it mandatory that I go back and run 410(B) applying the statutory minimums. I do not believe it is necessary but have not been able to find anything in black and white to support my opinion.
Mike Preston Posted February 27, 2002 Posted February 27, 2002 The answer is yes, you must separately test under 410(B) in order to be able to use the separate testing under 401(k) or 401(m). If you need the cite for some reason, let me know and I'll look it up.
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