Number of Allocation Rates in Cross Tested Plan

[Vlad401k]

Hi,

I recently read a provision that stated that for prototype plans, the number of allocation rates for NHCEs is limited to at most 25, but could be even less depending on the number of participants. Do you know if this provision still applies, or if it no longer applies after PPA or because of some Revenue Procedure?

Could someone please clarify if this provision still applies to Prototype plans?

Thank you.

[Belgarath]

No, that's no longer a requirement. The IRS required this for the EGTRRA prototypes, but did away with that requirement for the PPA prototypes.

Now, I suppose it is theoretically possible that someone still retained this provision in a document, even though not required, but I don't know why anyone would...