Coverage/nondiscrimination testing with non-participating Controlled group member

[Belgarath]

Just curious as to how people generally handle this in real life. Suppose you have Corporation A, which sponsors a plan. Plan passes all testing just fine, and employer doesn't want any changes whatsoever.

Owner is also 100% owner of Corporation B. No employees other than the owner. No Plan, and doesn't want to adopt Plan of Corporation A as a participating employer. Assume document properly reflects existence of CG, but related employer (Corp B) doesn't adopt the Plan of Corp A  as a participating employer.

Although you technically have to consider compensation for the owner from Corporation B for 415 comp, nondiscrimination testing, etc. - would you bother to ask for it, particularly if the employer doesn't really want to give it? Since it could only HELP passing testing, which already passes, would you ignore?

[Tom Poje]

well if the plan already passes then as you said, increasing comp would only help. I think I would simply note things somewhere.

"close enough for govt work"

e.g. under the top heavy rules T-39 (1.416-1)

Must ratios be computed each year to determine if plan is top heavy?

No.....precise top-heavy ratios need not be computed each year..

 

so you just aren't being 'precise'. yes, even you, Belgareth.