sources to include in Average Benefits Percentage test of 401(a)(4)

[Guest Jay B. Fitzgibbons]

my admin software gives me the option of including 401(k)&(m) sources as well as ER PS when running the Average Benefits Percentage test under their 401(a)(4) compliance test report. But, it's my understanding that you can't include these sources for 401(a)(4), only for coverage under 410(B). Can anyone shed light on this rule for me, and/or share your thoughts?

[Guest]

hmmm. specifying software would have helped, but I will explain based on Quantech. If this is not your software, it may have a similar explanation.

There is a check box 'include 401(k)/401(m) data'.

selecting this only pertains to a few reports.

the Avg ben % test is not effected by your choice, neither is the 401(a)(4) test.

If the item is selected, the 'who benefits' report gives the user 3 columns of info - one for each of the 'plans'. if not checked, you only get 1 column, for the 401(a) contributions.

The same thing applies to the 410(B) report.

so, it could be simply a misunderstanding of the terminology.

If you are indeed a Quantech user, I have buried somewhere in a Word file notes on nondiscrim. somewhere around 20 pages or so.