Average Benefits Test

[justatester]

Hi...

I am not exactly where to find this in the regs. When running an ABT test, can you use the net amounts after the NDT failure? In other words, plans fail the ADP/ACP test and make ROES, can I use this reduce contribution amount when running the test?

Thanks for you help...

[Tom Poje]

I don't believe the regs are specific on the issue, but everything I have ever read goes something like this

since refunds are still considered to be an annual addition, it probably makes sense to include such amounts in testing. The person did indeed receive these as a contribution, and received them as a distribution as well.