414(s) Test in Relius

[Susan S.]

I am working on a 401(k) plan in which the only ER contribution is a discretionary match. The match formula is the same for all participants and there are no requirements to get the match. The plan requires a 414(s) test due to the exclusion of bonuses. When I run the 414(s) test in Relius, it generates two reports: Report #1: 414(s) compensation for 410(b)-5 average benefit percentage test. Report #2: 414(s) compensation for nondiscrimination test under 401(a)(4). The only difference between the two is report #2 excludes terminees with less than 500 hours. Do I need report #2 since I don't have a profit sharing contribution?

[Tom Poje]

that sounds correct ( if match had an hours requirement then test 2 would be the one you would use)

[Susan S.]

Thanks. Seems like Relius should pick this up from no ER contribution in plan specs.

[Tom Poje]

but what if you had a profit sharing contribution?

what you really need would be 3 tests - one for deferral, one for match, one for ps.

I've seen a few odd plans in which you can't defer on bonus but it would count toward profit sharing.

fortunately those don't happen very often.

as is, you can get by with what you have. my guess is that if push came to shove it would be possible to modify the report to achieve what you need

[Susan S.]

Then I would have to quit my job. LOL