LarryDavid Posted September 14, 2022 Posted September 14, 2022 I have a multiemployer 401(k) plan that is comprised of 20 employers, with all participants collectively bargained (i.e., there are no non-union employees in the plan), and all part of the same CBA. When performing the ADP testing for this plan, would I test each employer on its own or am I required to test the entire population as one employer? The regs indicate that I must test the entire plan as one employer, but I could have sworn that testing for multiemployer plans was always done on an employer by employer basis. (Meaning for this plan, if 19 of the 20 employers had no HCEs I could ignore those groups and just test the 1 employer that has an HCE). Perhaps what I always thought was the case has simply always been wrong. Any help is appreciated!
Luke Bailey Posted September 19, 2022 Posted September 19, 2022 I would follow the reg (1.401(k)-1(b)(4)(v)(C) if it applies. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034
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