Aggregation with 403(b) plan

[AndyH]

Employer with ERISA-covered 403(B) plan wants to set up cross tested profit sharing plan. The 403(B) had both employer money and employee deferrals. Still has 403(B) deferrals.

For the average benefits test component of the 401(a)(4) test, do the employee deferrals need to be included?

Would the answer be different if the 403(B) plan were non-ERISA employee deferrals only (on the basis that it was sponsored by the employee, not the employer?)

POSTSCRIPT:

I think I found the answer, which is tht the 403(B) is not aggregated with the 401(a) plan under any circumstances for purposes of testing the 401(a) plan.

[MWeddell]

I agree.

Under Notice 89-23, the 401(a) plan may be used when performing general testing for the 403(B) plan. However, there's no authority that works in the opposite direction. When demonstrating that the 401(a) plan satisfies 401(a)(4), you can't aggregate the 403(B) plan contributions or benefits with the 401(a) plan.

[AndyH]

Thank you, MWeddell. Very helpful.