dmb Posted October 2, 2003 Posted October 2, 2003 I am reviewing a cross tested profit sharing plan allocation for a plan year ending 10/31/02. There are three HCEs and 41 NonHCEs. The owner's alloc rate is 21.88%, his wife's alloc rate is 17.5% and the other HCE's alloc rate is 3% as is all the NonHCEs. Testing on an accrual basis, each rate group's ratio is greater than 70%. Shouldn't this plan still have to meet the 5% minimum gateway?? When wouldn't the plan have to meet the 5% (or 1/3) minimum gateway?? Thanks.
Blinky the 3-eyed Fish Posted October 2, 2003 Posted October 2, 2003 No. The gateway requirement first apply to plan years beginning in 2002. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
dmb Posted October 2, 2003 Author Posted October 2, 2003 Thanks. I guess i can give myself a big "duh".
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