Age Weighted Profit Sharing Plan

[MBCarey]

Hopefully this is not to dumb a questions.

Is an Age Weighted Profit Sharing Plan subject to ACP testing?

I have never run the ACP test on this plan before, but in amending the document that is one of the questions.

Thanks

mb

[actuarysmith]

An age-weighted or cross-testing profit sharing plan is only subject to ACP testing if it allows for 401(k) pre-tax salary deferrals and the employer makes a matching contribution.

If the plan is a stand-alone age-weighted profit sharing plan, ACP testing is completely irrelevant.

[MBCarey]

Thanks, thats what I thought. There are days when some questions freeze the brain.

Thanks again.

[Blinky the 3-eyed Fish]

After-tax contributions would call for an ACP test as well.

[Brian Gallagher]

and, if the document allows, any pre-tax amounts recharacterized as after-tax amounts due to a faild adp.