Combine plans for coverage

[Jim Chad]

2  plans with common ownership, have a different match.  For ADP and ACP, one is prior year and one is current year. 

Can we voluntarily combine the plans for just coverage?

[Tom Poje]

Forbidden. 1.401(k)-(b)(4)(iiii)(B)  ...for example a plan that applies the current year testing method may not be aggregated with another plan that applies the prior year testing method. (And you have to be consistent, if you aggregate for coverage you have to aggregate for nondiscrim and vice versa)

[Jim Chad]

Thank you Tom.  I knew that was true for 401a.  But I could not remember if it was true for ADP/ACP

[CuseFan]

Love the graphics!

[Jim Chad]

If the document does not exclude union employees from eligibility,  can the union employees be excluded from testing .  The other company in the controlled group has union employees.

[Mike Preston]

Yes.

[401_noob]

I was under the impression that it was required that union employees be tested separately if the Plan covered both union and non-union employees.  Is that not the case or is there an exception in this situation?

Thanks in advance! 

[Mike Preston]

You are correct.  I was assuming the union employee would be an NHCE.