metsfan026 Posted September 4, 2024 Posted September 4, 2024 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 Posted September 4, 2024 Posted September 4, 2024 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? Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
metsfan026 Posted September 4, 2024 Author Posted September 4, 2024 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 Posted September 4, 2024 Author Posted September 4, 2024 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 Posted September 4, 2024 Posted September 4, 2024 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. Lou S. and Bri 2 William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
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