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non-discrim testing for salaried vs. hourly plans


Guest le190

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Posted

i have a client that wants to split a combined 401(k)profit sharing plan into one hourly paid ee plan, and one salary paid ee plan. i always thought these types of plan were tested together, but i was told last week by a lawyer that they can be tested separately. now i'm REALLY confused! can someone clear this up for me?

Posted

If each plan is able to pass the coverage test, then it can stand on its own for the purposes of non-discrimination testing.

[This message has been edited by Disco Stu (edited 02-21-99).]

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