A number of practitioners have inquired – how does the Sample Adoption Agreement Language of Section A, Participant Group Allocation work in operation?
Background: Revenue Procedure 2005-16, 2005-1 C.B. 674, allows adopting employers of non-standardized defined contribution Master & Prototype (M&P) plans to adopt an allocation formula that is designed to be cross-tested for nondiscrimination on the basis of equivalent benefits under I. T. Regs. 1.401(a)(4)-8. The Service issued cross-tested language in LRM #94 in October 2006. The language in LRM #94 is designed to allow the adopting employer of an M&P plan to select either a participant group allocation method or an age weighted method for determining allocations under the plan. LRM #94 restricts the number of allowable allocation rates under a non-standardized M&P plan using the participant group allocation method, based on the number of NHCE’s and HCE’s in the plan. While the purpose of LRM’s is to assist sponsors of M&P plans in drafting plan language to conform to applicable law and regulations, it is generally not mandated. However, in order to effect consistent application of c
Related Questions
- A number of practitioners have inquired - how does the Sample Adoption Agreement Language of Section A, Participant Group Allocation work in operation?
- I paid money to join NASW’s Private Practice Section. Is the Private Practice Section related to the Private Practitioners Group?
- Are there prerequisites or language requirements for group programs?
