Guest JDK Posted February 9, 2007 Posted February 9, 2007 Our firm has taken over a 401(K) plan that allows for salary deferrals, 3% Safe Harbor & Discretionary P/S. In reviewing 2005 testing performed by another firm it was discovered that they were eliminating the salary deferral from the rate group testing and just testing on the Empolyer contribution(SH & P/S). Is this permissible? I was always under the impression that all contributions were tested. Any feedback would be appreciated.
Tom Poje Posted February 9, 2007 Posted February 9, 2007 all contributions are used in the avg ben % test. the nondiscrim classification portion ( which most people refer to as rate group testing)is SH and PS only
Guest JDK Posted February 10, 2007 Posted February 10, 2007 all contributions are used in the avg ben % test.the nondiscrim classification portion ( which most people refer to as rate group testing)is SH and PS only Thanks for the clarificatioin
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