Coverage Testing for Frozen DC Plan

[chris]

I thought I had run across some provision in the Regs. before regarding a frozen plan being exempt from coverage testing. Can anyone point me in the right direction? Thanks.

[Blinky the 3-eyed Fish]

Are you talking 410(b) or 401(a)(26)? DB or DC?

If it's 401(a)(26) and a DB plan, then see those regs. While a frozen plan is not 100% exempt from a deemed pass, there are quite a number of exceptions that it can fall under to pass.

If it's 410(b), then since no HCE benefits in a frozen plan, you automatically pass coverage. Of course, you could still have a frozen DB plan without EGTRRA adopted that requires TH minimums to continue to accrue.

[chris]

Thanks, Blinky.

I actually retraced some steps and got to the 410b exception in the Regs re no highly's benefitting. I just need to verify from the recordkeeper if any forfeitures occurred in the current plan year. Per the Regs under 401(a)(4) "benefitting" only includes an allocation of employer contirbutions and forfeitures. Thus, assuming there are no forfeitures, the exception should be met.

Thanks again.