dmb Posted July 30, 2003 Posted July 30, 2003 I am trying to prepare a DB & PS combo where no participant participates in both plans. The DB is a safe harbor formula, the PS is cross-tested. By testing both plans on an aggregate basis, both the midpoint rate group test and the average benefits test pass. Does the PS plan still need to pass the 70% coverage test?? Thanks.
AndyH Posted July 30, 2003 Posted July 30, 2003 If you are aggregating the two for a(4) testing, then you are aggregating them for coverage. It sounds like 100% are in one plan or another, in which case you pass the ratio percentage test by 100% on a combined plan basis. Watchout for the DB/DC combo gateway requirements WRT a(4) testing.
dmb Posted July 30, 2003 Author Posted July 30, 2003 Thanks. I'm glad you mentioned the combo gateway. I have a couple of participants that worked less than 1000 hours and receive only TH minimum. I had them getting 5%, i guess they have to get 7.5% since the highest HCE alloc is greater than 37.5%. Thanks again.
Blinky the 3-eyed Fish Posted July 30, 2003 Posted July 30, 2003 37.5% is not the cutoff to require the NHCE's to receive the 7.5% minimum gateway. It is 35.000000000000000000000000000000000000000000000000000000000000000000001% "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
WDIK Posted July 30, 2003 Posted July 30, 2003 Neither my brain nor my calculator has that kind of precision! ...but then again, What Do I Know?
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