Average Benefits Test & Cross Testing

[Guest Michele Ciz]

If you are passing the 410(b) test using the ratio test, but failing the average benefits test, can you still use cross-testing? Or do you need to pass the average benefits test before you can go to the 401(a)(4) test.

[Tom Poje]

I will work on the assumption this is in the wrong folder (since you are a first time user, that is understandable)

there is a folder for cross testing.

410(b) is coverage, and must be passed before proceeding to any testing for nondiscrimination.

you can pass this test either using ratio % test or avg ben test - it does not have to be both.

since you indicated you failed avg ben test, that implies you probably failed avg ben % test, which usually makes it extremely hard to pass rate group testing, though not impossible.

but then you need each HCE to pass the ratio % test by himself.