intergated with ss

[Guest LBH]

Can I have 2 plans integated with social security? (a 401k profit sharing and a money purchase) I am assuming they will exceed the 5.7% for $ over twb.

Is it o.k. if they pass the same non-discr tests as a cross tested plan?

[Fredman]

Its my understanding (I've seen examples) that if you have a P/S and a MP plan only one of the formulas can be integrated.

It is ok to have a cross-tested P/S plan and a cross-tested MP plan as long as each plan can satisfy the testing requirements. Go figure.

No cites. No regs. Just what I've seen.

[Wessex]

SS integration - "permitted disparity" is not permitted for two plans covering the same employees if the disparity would exceed the "annual overall permitted disparity limit." See Section 401(l)(5)(F)(ii) of the Code and Treas. Reg. Section 401(l)-5(B). If one or both of the plans are not intended to satisfy Section 401(l), then, of course, the plan or plans could be tested under the general test, including on a cross-tested basis. If both plans are tested under the general test, at least one of the plans must pass the general test without imputing disparity. If one of the plans is intended to satisfy Section 401(l), the other plan cannot impute disparity. See Treas. Reg. 1.401(a)(4)-7(d)(3).

[This message has been edited by Wessex (edited 05-17-99).]