401(k) Testing Techniques

Text below is from the program that ran in 2007, and is for information only. If you're interested in an onsite presentation for your group, please submit a Call me request or e-mail webtechsem@relius.net.

NOTE: Back-to-back scheduling with the Participant Forms and Notices Workshop .

 

Understanding All The Options

The final 401(k) regulations, new IRS administrative rules, and the Pension Protection Act of 2006 – all have had a dramatic impact on 401(k) plan administration and testing. Many of these changes take effect for 2006 plan year testing, to be performed in early 2007. To maximize the benefits available to plan participants, practitioners performing 401(k) testing must stay abreast of changes to the testing rules. They also must be aware of all of the operational techniques available to enhance testing results. In the 401(k) Testing Techniques program, we address all the recent changes to the laws, as well as the latest IRS pronouncements affecting 401(k) testing. Using detailed examples, we describe the important operational testing options practitioners may use. You’ll learn which techniques require advance planning and plan documentation, and which remain operational at testing time. The tips and strategies described in this timely program could mean the difference between passing ADP and ACP testing and an expensive or frustrating failure of these tests.

What we will cover:

  • Order of Testing
  • Net vs. Gross Compensation
  • Part-year Compensation
  • Borrowing Elective Deferrals
  • Bottom-up QNECs under the Regs
  • Otherwise Excludible Employee Rule (permissive disaggregation)
  • Early Participant Rule
  • QNEC Options
  • QMAC Options
  • Top-paid Group Election
  • Using Roth to help in ADP Test
  • Reporting Corrective Distributions
  • Gap Period Income
  • Catch-up Contributions
  • EPCRS and Re-testing
  • Safe Harbor 401(k) vs. Qualified ACA

    • Objective:
    After completion of the course, each attendee will be able to:
    • Understand and apply the testing options appropriately.
    • Determine which of the various options will benefit a particular client.
    • Understand the rules and requirements of each option.
    • Determine the appropriate timing of changes.
    • Explain the benefit of a particular option to an employer.

    NOTE: Back-to-back scheduling! The 401(k) Testing Techniques Workshop follows the morning Participant Forms and Notices Workshop. A multi-program registration discount is offered for those who wish to attend both programs at the same location.

    Who should attend

    Any 401(k) plan practitioner who wants a greater understanding of the testing options should plan to attend. The only prerequisite is a basic understanding of the testing rules. Pension consultants, plan administrators, CPAs, attorneys, actuaries and trust officers – all will find this course very beneficial.