Permissive Aggregation for coverage testing

[Guest cxs]

I am doing ADP/ACP testing on many plans within the same controlled group. All are calendar year, all have current year testing. Most have different rates of matching contributions and employer non-elective contributions. I am testing all excluding those below the statutory eligibility. If I permissively aggregate some plans what other testing do I need to do? For example, I aggregate 2 plans. One plan has some employees receiving a 3% match, and some employees excluded from the match. The other matches 2%. They pass the ratio percentage test with the plans aggregated (as well as on a control group basis). Do I need to do benefit rights and features for the different rates of match? Do I need to do it for any other plan features that may be different?

Thank You

[MWeddell]

Yes, if you aggregate for ADP / ACP testing, then you must also aggregate for 410(b) coverage testing and BRF testing.

A tougher issue to resolve is whether you have to aggregate the employer nonmatching nonelective contributions portion of the plan or can test them separately. Seems to me that you may test them separately but be aware that the IRS has informally opined that you should consistently aggregate that portion of the plan too since you are aggregating the 401(k) and 401(m) arrangements.