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2023 Form 5500-SF Questions 14a - IRS Compliance Questions


TN CPA

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Hello - Line 14a on the Form 5500 reads "Does this plan satisfy the coverage and nondiscrimination tests of Code Sections 140(b) and 401(a)(4) by combining this plan with any other plans under the permissive aggregation rules?" Y or N. Our software vendor has as the input question "Plan satisfies the coverage and nondiscrimination tests of Code sections 410(b) and 401(a)(4). Y or N.

What is the correct answer for a single-employer plan (no aggregation) that does satisfy the coverage and nondiscrimination tests of Code sections 410(b) and 401(a)(4) - but without aggregation?  This is a confusing questions and almost reads like a trap :)

 

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The question is whether the plan satisfies coverage and nondiscrimination by permissive aggregation.  If there was no aggregation, the answer is no.

From the instructions: 

Quote

Check "Yes" if this plan was permissively aggregated with another plan to satisfy the requirements of Code sections 410(b) and 401(a)(4).

 

 

 

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