dmb Posted March 1, 2003 Posted March 1, 2003 I am trying to set up a DB/DC combo plan. There are two HCEs, one over 70 and one in early 30s. There are 8 NHCEs ages 23 - 67. One of the HCEs is 100% owner and he wants to participate in both plans. The DC plan is X-tested PS and the DB plan excludes the youngest empoyees and provides a 2% of comp benefit for the older employees while giving the owner as much as he can get considering the 404(a)(7) limit. The combined ebars pass the rate group test and avg. bfts test. Does the DB plan have to pass the rate group test and avg. bfts test on its own??? Thanks.
Mike Preston Posted March 3, 2003 Posted March 3, 2003 If you are testing the plans separately, yes with respect to the rate group test, no with respect to the ABT. If you are testing them together (which it sounds like you should do because they pass when tested together), then no. Note that you can test the DB and the DC completely separately (wthout considering each other) even for the ABT if you want to.
AndyH Posted March 3, 2003 Posted March 3, 2003 Don't forget the DB/DC combo gateways that may apply 1/1/02 if you are testing them together.
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