ERISA-Bubs Posted March 7, 2019 Posted March 7, 2019 We have two plans that are in an affiliated service group. One plan is very large and has a high density of HCEs. The other is much smaller with a more normal population. The large plan isn't an issue -- it isn't affected much by being in the same affiliated service group as the small plan. However, the testing for the small plan is wrecked by being tested with the large plan. I am at a loss for what to do. Anyone have this problem and figure out a good solution?
C. B. Zeller Posted March 7, 2019 Posted March 7, 2019 It would be helpful if you could throw out some numbers - how many HCE and NHCE in each company? Which tests are having issues - coverage? ADP/ACP? Are you permissively aggregating the plans for testing? Are there any class exclusions? 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
Mike Preston Posted March 8, 2019 Posted March 8, 2019 11 hours ago, ERISA-Bubs said: We have two plans that are in an affiliated service group. One plan is very large and has a high density of HCEs. The other is much smaller with a more normal population. The large plan isn't an issue -- it isn't affected much by being in the same affiliated service group as the small plan. However, the testing for the small plan is wrecked by being tested with the large plan. I am at a loss for what to do. Anyone have this problem and figure out a good solution? smh CuseFan 1
PensionPro Posted March 8, 2019 Posted March 8, 2019 On 3/7/2019 at 9:59 AM, ERISA-Bubs said: We have two plans that are in an affiliated service group. Plans can not be in an affiliated service group. On 3/7/2019 at 9:59 AM, ERISA-Bubs said: Anyone have this problem and figure out a good solution? Both entities adopting the same plan and providing equivalent benefits might help. PensionPro, CPC, TGPC
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