Easy Question - I'm Really Slow Today

[Madison71]

Ok - so I am preparing this determination letter request - Form 5300 and am preparing the ratio percentage test determination on lines 13. Client supplied the data. 2 related companies - 2 plans. We have already filed the d-letter for the other company and it passed with a ratio percentage over 97%. In the company we are filing the determination letter there are 80 total active employees. There is 1 highly compensated employee in this company eligible to participate, 124 in the other company ineligible to participate in this plan. Total number of eligible non-HCEs in our plan is 80, total number in the other company ineligible is 1100 for a total of 1180.

To me it seems like it is a no brainer and it automatically passes. 1 HCE in this company eligible to participant in the plan 124 in other company ineligible. The percentage eligible is less than 1%. 80 NHCEs in this company eligible, 1100 that are not. That's a little under 7%. So, for easy math lets say it passes by 700%. What is my ratio percentage that I put in the d-letter? I would think it would be 100%...not anything higher.

Thank you so much - bit of a rush with last minute restatements.

[Mike Preston]

No reason to limit the percentage to 100%.