FAQ 550: 401a4--Projected new comparability plan 401a4 test available?


I have compensation through November 15 for a calendar year profit sharing plan where each participant is their own allocation group. I would like to run a projected 401a4 test having ASC calculating projected plan year compensation based upon year to date. Does ASC have the ability to project year-to-date compensation for the full plan year for cross-tested plans, somewhat similar to the projected ADP test?


401a4 doesn't currently have a projection module similar to the ADP test. You can, however, run the HCE and Key determination using projected comp. Ultimately, you may want to export the 11/15 comp (and contributions) to a spreadsheet, project it there, copy the plan (so you don't overwrite actual data), and then import the projected comp and/or contributions to the copied case to run the projected 401a4 test.