Coverage Testing Correction Methods

[metsfan026]

Quick question on the 70% coverage testing.  If a client fails, is there any alternative correction method than a QNEC?  I didn't believe so, I just wanted to be 100% sure.

Thanks!

[C. B. Zeller]

Could the plan pass using the average benefits test?

Are we talking about the deferrals, match, or profit sharing portion of the plan?

Does the plan document address what will happen in the event of a coverage failure?

[metsfan026]

13 minutes ago, C. B. Zeller said:

Could the plan pass using the average benefits test?

Are we talking about the deferrals, match, or profit sharing portion of the plan?

Does the plan document address what will happen in the event of a coverage failure?

This isn't my actual client.  An advisor asked me, so let me get a few more details....lol

[metsfan026]

16 minutes ago, C. B. Zeller said:

Could the plan pass using the average benefits test?

Are we talking about the deferrals, match, or profit sharing portion of the plan?

Does the plan document address what will happen in the event of a coverage failure?

It's just a general question at this point.  They haven't failed, but are worried about if they fail in the future.

[Bill Presson]

Assuming it’s a PS source failure, usually it’s an -11g amendment OR the plan document has specific methods the plan has to follow.