Aggregation

[CJS07]

We have taken over two plans that are 100% owned by the same individual. The former TPA never aggregated the tests and treated the plans as entirely separate (two documents, two 5500s, two plans at the fund company).

The owner participates in only 1 of the plans. The plan the owner participates in does a matching contribution. The other plan has deferrals only and all NHCEs for 2006. I know we need to aggregate the 410b test but someone mentioned aggregating the ADP/ACP testing which I had never heard of - anyone know anything about aggregating ADP/ACP???

[Mike Preston]

You do not aggregate for 401(k) unless you aggregate for 410(b).

The exception is if your HCE participates in both, in which case you count all deferrals and all compensation for that one individual in BOTH plans. The new regs are slightly different from the old regs on this point, so look it up if it applies. I note that you already said it doesn't apply in this case, but I thought I'd mention it anyway.

[Guest DazedAndConfused]

You do not aggregate for 401(k) unless you aggregate for 410(b).

The exception is if your HCE participates in both, in which case you count all deferrals and all compensation for that one individual in BOTH plans. The new regs are slightly different from the old regs on this point, so look it up if it applies. I note that you already said it doesn't apply in this case, but I thought I'd mention it anyway.

Can you point me where I can find more information on this? Imight have this situation. Thanks!

[Tom Poje]

I point you in the following direction:

If participates in more than one plan of the same employer then add all deferrals from all plans. Use definition of compensation for plan being tested. [1.401(k)-2(a)(3)(ii)]

page 95 if you downloaded the (final) 401k regs attachment - look back to May 3 or so posting if you didn't download them out.

[Guest DazedAndConfused]

I point you in the following direction:

If participates in more than one plan of the same employer then add all deferrals from all plans. Use definition of compensation for plan being tested. [1.401(k)-2(a)(3)(ii)]

page 95 if you downloaded the (final) 401k regs attachment - look back to May 3 or so posting if you didn't download them out.

I hate to ask this but can you direct me further as to where I can find these references? I have googled them ten different ways & looked up in the treasury regs & the dol & the IRA but cannot find it. Thanks - Sorry for being so dense.

[J Simmons]

D&C,

Try this link

http://tinyurl.com/2wz6zm