An integrated Plan [IRC 401(l)] wants to add discretionary cross tested contribution source

[CharlesLeggette]

It’s my understanding[which may be well out dated], that 401(l) contributions cannot be considered in the 401(a)(4) general test, so basically they're useless for Cross Testing purposes.

BTW there are document issues…but please disregard them as this is a custom Plan….

Any thoughts?

[Lou S.]

I think it is on safe harbor 401(k) plans using the 3% non-elective contribution that you run into imputed disparity issues in the general test where you aren't allowed to use it.

[Tom Poje]

not quite sure what is being asked.

all nonelective contributions would be used in the rate group test.

you can't impute disparity on the 3% safe harbor nonelective contributions (nor on any QNECs) but they are still used in the test.

as a side note:

even though a fully integrated plan (e.g. 100% of the TWB at 5.5% excess) is deemed to fall into the category of not needing testing, if you were to test it on an allocation basis and impute disparity everyone would have the same e-bar. the formulas were written to work that way.