Brushing Up On Cross Testing

[mming]

Over the years I have encountered plan consultants who perform cross testing using very different methods, some directly contradicting how others do it, some not knowing what the numbers mean and just assuming the computer did it right. I learned some of the basic rules regarding cross testing long ago, but after seeing such inconsistency among professionals, I would like to not only go over the basics but also become familiar with more involved designs, including cross testing for 401k plans. I've looked for online instruction/classes without any success. I would also welcome written instruction, especially if it includes examples. What type of resources and training is available for this purpose?

[Belgarath]

Hard to beat Sal's EOB. He has lots of examples if you take the time to actually go through them, and he has a particular genius for coming up with "real life" sorts of scenarios.

I think Mr. Poje is one of the experts on this board regarding the subject, and he may have some suggestions for you.

I find that many people automatically equate general testing with cross-testing, which often causes some confusion.

[Tom Poje]

always humbled by comments from others. I feel like I'm the one learning from others all the time)

the Coverage and Nondiscriimination Answer Book also has a number of examples (I worked on that book, but please don't look at that as a plug!)

attached are the IRS notes, very basic but free!

attached also an article I put together for the ASPPA Journal (Spring 2009) which gives a walk through of where the numbers come from. (As I recall there was one number typo that didn't change anything- it was obvious from the context what was meant.) I actually received a nice e-mail from someone on this article saying he always wanted to be able to calculate an E-BAR by hand and this was the first thing he ever read that helped him understand what was going on in the cross testing calculation.(I avoided such terms as 'normalization' and the like.)

non discrim notes from the govt - demo 6.pdf

Basics of Cross final version.doc

[mming]

Thank you both for your responses. The attachments, Tom, are greatly appreciated. I hope to one day soon be able to provide answers on these matters rather than just ask questions about them.