tghooper Posted January 16, 2019 Posted January 16, 2019 A plan made a profit sharing contribution and failed the compensation ratio test. The allocation is comp/comp per the plan doc. I believe I can still run a rate group using test using 415 compensation without having the cross test language in the plan document. Am I correct on this? Thanks
Mike Preston Posted January 16, 2019 Posted January 16, 2019 Yes, unless the plan dictates you can't.
CuseFan Posted January 17, 2019 Posted January 17, 2019 Yeah, you can always general test for nondiscrimination, but if you do cross-test, make sure your gateway is satisfied on the basis of nondiscriminatory compensation (e.g., gross). Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com
tghooper Posted January 17, 2019 Author Posted January 17, 2019 Yes and Yes to both...also gateway is N/A if test on a contributions basis. Thanks!
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