Ratio % vs average benefits

[Guest padmin]

If a cross tested profit sharing plan passes ratio % as a whole and each rate group passes ratio % test( using EBARs) does average benefits even come into play? Does the answer change if there is a 401(k) and/or match component?

[AndyH]

No, each rate group must pass coverage, so if they each pass the ratio/percentage test then they do not also need to pass the average benefits test.

No, a match or deferral has no impact on the test covering the nonelective portion. They have their own separate testing requirements.