NOTICE OF CHANGE FOR SEMINAR REGISTRATIONS:
To register for Relius Education seminars and conferences, please login or register for a new login account before proceeding. For more information, please see the Benefits of a Relius User Login Account. For assistance, please contact Client Services at 800-326-7235, and select Option 6.

Cross-Testing: Making the Most of Single-Member Groups
Presentor: Derrin Watson Recorded Date: 11/24/2009 Duration: 100 Min.

Description

This program was recorded during a live presentation on November 24, 2009.

The IRS has given its blessing to the use of single member groups in cross-tested plans, but it’s a mixed blessing. The resilience of “everyone in a separate group” allocation system is phenomenal. It offers employers the ultimate in design and operational flexibility. But it comes at the price of concerns over deemed 401(k) plans. Cross-tested prototype plans additionally must watch out for new limitations on the number of NHCE allocation rates.

This program examines the strategies, opportunities, and pitfalls of having each participant in a separate group. It includes several examples which will illustrate not only the power of this design option, but also how to maximum the benefits of the design.

Topics include:

  • Allocation Group Background
  • The Concerns of the Gold Standard Memo
  • IRS LRMs and Their Aftermath
    • Limitations on Allocation Rates
    • Deemed 401(k) Warning
    • Limitations on Allocation Within Groups
  • Sample Allocations
    • Computational Factors to Maximize Benefit
    • Choice of Testing Alternatives
  • Documentation Issues

Speaker S. Derrin Watson, J.D., APM
Recipient of ASPPA's 2006 Educator's Award

Instructional Delivery Method:
Group - Internet-Based

Prerequisites: There are no prerequisites or other advanced preparation for this program. The instructor will assume that participants are familiar with cross-tested plan designs, and understand the basics of using the average benefit test to do the general nondiscrimination test.

Level: Intermediate.

System Requirements:

  • Windows 95, 98, NT 4.0 , 2000, XP
  • Internet Explorer 4.01 or later, Netscape 4.08 or later
  • 56K modem connection or better (128K recommended)
  • Pentium 166+ MHz, 128MB RAM or more
  • 800x600 or higher display resolution
  • Soundcard, Speakers

Recorded Event Time Limitation:
This recorded event will be available for 20 days from your date of registration.

Program related requests, questions, or concerns may be e-mailed to: relius.education@sungard.com.