Controlled Group and Coverage Testing

[justatester]

I have 3 plans in the controlled group. Plan A, B, & C. (Plan C is a Puerto Rico Plan) 2011 Plan Year Test

If I apply the under 21/Less 1 YOS option to testing (disaggregation). Plan A does not pass this portion of the test-since those from plan b & C in this category are not benefiting. The plan has 23 HCEs that were hired in after July 2010-(plan has semi annual entry). Plan B passes coverage for this group.

My question is: Can I run plan A on a non-disaggregated basis therefore running the ADP/ACP non-disagg basis (not separating the under 21/less 1 YOS)? Then run Plan B testing the under 21/less 1 YOS separately for coverage?

If I can do the above, how does it impact how the BRF test would be completed? Plan A has a service based match? Would that then be completed in the same manner for each plan? (running each group applying the under 21/less 1 YOS differently)

Any thoughts would greatly be appreciated!

[ETA Consulting LLC]

So, you had 23 people whose Compensation exceeded $110K between July 2010 and December 2010? Or, are they owners?

Just asking as I'm trying to make sense of the fact pattern.

[justatester]

Yes..23 people earned over $110k from July 2010-December 2010.

[Tom Poje]

if I understand your question correctly

when testing A you want to aggregate all plans.

then when testing B you want to turn around and test it by itself.

This would seem to violate 1.410(b)-7(d)(3) Duplicate aggregation which provides the following example

Plans A b and C

you can have

ABC

AB and C

AC and B

BC and A

(or A B C)

[justatester]

Hopefully this explains what I want to do..For purposes of this question, let's assume only pretax money.

Plan A:complete coverage on its own but not testing the "otherwise excludables separately". Count all of Plan B & C as non-excludable not benefiting.

Plan B: Complete coverage with two tests-those who meet statutory minimums and the otherwise excludables. Counting A & C as non-excludable not benefiting.

Plan C: Since PR plan just test those independently.

I guess my question really is can you test coverage for different plans within the controlled group sometimes apply the "otherwise excludable" option and sometimes not-as long as your denominator represents the entire controlled group?

I want to be able to test the ADP sepearately for A, B, & C. For A (not applying otherwise excludable), For B-applying otherwise excludable, and For C (PR plan)

[Tom Poje]

I'd say no.

I think you could

A and B

and for C split into 2 - otherwise excludable and statutory includable

but you want something like

A and B

and then

B otherwise excludable and statutory includable

but since B is already in step 1 I don't see how you can use it again.