John Feldt ERPA CPC QPA Posted June 30, 2011 Posted June 30, 2011 A cash balance plan provides a credit which is tested to find out if it's meaningful under 401(a)(26). I don't see a measurement date for this tied to anything specific in the plan document. Must the date for determining its "meaningfulness" be the 1st day of the plan year or can the last day of the plan year be used instead?
SoCalActuary Posted June 30, 2011 Posted June 30, 2011 Since it is a compliance test, I always measure it on the year that just ended. If I am designing a new formula, I project to the end of the first year to make the determinaiton.
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