5307 #3(g)

[chris]

Line 3(g) of 5307 ask if the Plan provides for disparity in contributions....that is intended to meet the permitted disparity requirements of §401(l). The plan is a volume submitter §401(k) that provides for a cross-tested allocation formula. My guess would be to answer yes as permitted disparity is most likely used in the cross-testing formula, but there's nothing in the document(a Corbel document) which addresses permitted disparity. I recall there being actual language regarding permitted disparity in the PSP and MPPP documents. Any suggestions?

[chris]

My understanding is that I would in fact answer 3(g) no since the disparity allowed w/r/t cross-testing is not necessarily permitted disparity addressed in 401(l).

[g8r]

With a cross-tested plan, you are not satisfying 1.401(l), even if you use imputed disparity in testing the plan. Thus, as pointed out, the answer to 3(g) is no.