Jakyasar Posted June 4, 2024 Posted June 4, 2024 Hi I hope I am going to be able to explain this properly. Looking at a takeover combo plan which was done in software A and I am checking it on software B CB plan uses full year salary where DC plan uses salary from DOP. I have not had one of these in sometime so am conflicted with the different results. Only DC provides top heavy. The way the prior TPA did the calculations with software A, they calculated the DC EBARs gateway using salaries from DOP and they added those results to CB EBARs. Overall testing was done using full year salary. The way my software B does the EBARs, looks at both plans, picks the higher salary and applies gateway to the higher salary. Are both methods acceptable? Thanks
Bri Posted June 4, 2024 Posted June 4, 2024 I would think there's one value per person for 414(s) compensation as used in the testing, as it sounds that these plans are being aggregated to pass their stuff. And as such, one value to use to determine the minimum gateway. (happy to be wrong) Participants always enter both plans at the same time, right? (With only the comp definition different?) Jakyasar and Lou S. 2
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