Controlled Group ADP Testing

[JBones]

Restructuring is prohibited in ADP testing, but if a controlled group exists and there are 2 separate plans within the controlled group, can each plan be tested separately assuming each passes 410(b), or are both required to be aggregated for ADP purposes?

[Tom Poje]

assuming there isn't something completely strange going on, if you have 2 separate plans, then it is your choice to aggregate or not aggregate.

but if you aggregate for ADP testing you aggregate for coverage as well. it is not I will aggregate for coverage but not ADP or vice versa.

if you choose not to aggregate there is one possible issue that is missed.

for coverage, when looking at plan A, you treat all employees who met the eligibility as includable and not benefiting. same for the match portion, but you can not exclude terminees less than 500 from B, as that rule only applies to 'participants'