cpc0506 Posted April 5, 2016 Posted April 5, 2016 We have a plan where the profit sharing formula puts each employee in his our rate group. Due to the age of the owner, she is younger than her only other employee. trying to pass all testing required, a New Comparability allocation will be difficult. I have suggested to allocate using integration. Is this allowed? And if so, since integration is a safe harbor allocation method there is no additional testing required. Is that correct?
ETA Consulting LLC Posted April 5, 2016 Posted April 5, 2016 It is allowed, but it wouldn't qualify as a uniform allocation formula. Hence, you'd have to test it; which can be done by imputing disparity in order to pass. Good Luck! CPC, QPA, QKA, TGPC, ERPA
BG5150 Posted April 6, 2016 Posted April 6, 2016 Remember, though, if you have a safe harbor, you cannot impute disparity on that piece. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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