vanilla 401(k) and each person in their own class

[Jim Chad]

The new EGTRRA Volume submitter has a check box to choose "Each Participant constitutes a separate classification" I am thinking about using this for every 401(k) Plan. This would give extra flexibility in the future as goals and circumstances change. I believe I can allocate on a basis that happens to match permitted disparity. And, since I will not have Permitted disparity in my document, I will not need the PPA disclosure for it.

I think every year I will be able to choose the integration level.

This seems to good to be true. I would sure like to hear what others think.

[Mike Preston]

Been doing it for years.

[Jim Chad]

Am I right in thinking that I loss ABT for both Coverage and Nondiscrim?

Do you think that is a good trade-off?

[Mike Preston]

You only lose ABT if you utilize the process in a manner that causes you to lose ABT. Hence, if you always provide a number greater than zero for each eligible class, you have no reason to exclude ABT. If you define your allocations such that the only people who get zero are those that would otherwise constitute a reasonable class, you have no reason to exclude ABT.

[Jim Chad]

Thank you, Mike!