Nondiscrimination testing

[FAPInJax]

I have questions regarding testing age in the following scenarios:

Employer has 3 plans - 401k, defined benefit and cash balance. The NRA is 65 for the defined benefit and 65 and 5 years of participation for the cash balance (don't ask why they would do something like this but they have). This has caused the owner to have a retirement age of 66 in the cash balance plan. Both of the retirement ages are uniform. The profit sharing has a NRA of 65.

The calculation of the gateway requires the use of testing age in the present value. Does this mean that the accrued benefit of the defined benefit must be adjusted to age 66 before calculating the present value so both DB plans have the same testing age?? (This would appear to satisfy the second definition of testing age)

IF the 401k plan did not exist, would the same adjustment have to be made in calculating the EBARs for nondiscrimination purposes??

A similar situation is where the employer has 2 plans - 401k and cash balance. The plans were drafted so that the NRA in the 401k is 65 but the NRA in the cash balance is 66 for the owner. Do the regulations require the EBAR of the DC to be projected to 66 so that the testing age is the same??

Regulation 1.401(a)(4)-9 appears to allow the DB plans to be treated as a 'plan' and the DC plans to be treated as a 'plan' BUT the question is whether testing age can be different and are adjustments required.

Thanks in advance for any and all comments.

[FAPInJax]

Gee, lots of views but no answers???? Is it because the question is too easy or just that there is no answer that anyone feels comfortable with?

[AndyH]

I'll comment because nobody else has. These are not questions that have textbook answers which I think is why you have not had responses.

Regarding age 66, I would test it with and without adjustment to age 65 and make sure that either approach passes.

Regarding gateway, I am not sure what your question is. Whatever the PV of the increase is as a percent of pay generates the gateway calcs. Maybe some clarification might be useful.

Regarding one plan or separate plans, it you have only deferrals or a match then the combined test is not one plan at all, it is mandatorily dissaggregated plans and I would think you have separate calcs as you seem to be inclined. You are not permissively aggregating for 401(a)(4); you are aggregating as required for the ABT. I would use the testing age in each plan separately.

Just a couple of reactions that might help stimulate some other comments.