Restructuring and PS/401(k) combined plan

[AndyH]

I'm trying to convince someone that the prohibition on restructuring of 401(k) plans does not apply to the testing of a profit sharing allocation in a plan with both profit sharing and 401(k) features.

I know the answer is that the testing is completed after the PS and (k) portions are mandatorily disaggregated, that they are for testing purposes two different plans, but I am having trouble finding anything in print that says that in plan English. Certainly in-depth analysis of the regulations would lead you to that conclusion, but plan English in one sentence or paragraph is not easily found.

Tom, maybe you can add that to the next edition of the Coverage and Nondiscrimination Answer Book. It's implied in many places, but .......

Any suggestions?

[Tom Poje]

Andy:

I'd like to say something as simple as "Look at the schedule T", instructions for line 3

"If this plan (singular) is required to be disaggregated..."

[jaemmons]

Regulation 1.401(a)(4)-1©(4)

"...Consistent with this requirement, the definition of plan subject to testing under section 401(a)(4) is the same as the definition of a plan subject to testing under section 410(b), i.e., the plan determined after applying the mandatory disaggregation rules of 1.410(b)-7(d)..."

This is the only place I've seen which "plainly" states the application of the mandatory disaggregation to 401(a)(4) testing.