FAQ 113: 401a4--Age used to calculate the EBAR?


We have an independent consultant checking the 401(a)(4) test that we ran for a client. According to him it looks like the system is using age 63 for the EBARs instead of the normal retirement age of age 62 (set in plan provisions). When the system calculates the EBAR, does it look at the date that the test is run or the plan year end date?

Is there anything that I can check to assure that I get the system to use age 62?


It looks at the Valuation Date coded in the specs. See our "401()(4) Training" document for details on exactly how our calculations work. The 401a4 Support Pages shows the data used in the calcs, including NRA. The system also allows the user to calculate the current age using 3 options: Age Last Birthday, Age Nearest, or Age Next. This is set in the plan specs on the Projection Assumptions (PROJECT) screen in the "Illustration Age" field.