FAQ 1017: 401a4 - Combo plans but testing plans separately

Problem: A client has a DB and a DC plan. We want to test them separately for their rate group testing however we need to get to the midpoint in the DB plan. If we run the 401a4 on the DB side without linking it to the PSP we fail the ABPT thus we don't get the mid point and the test results show a fail. How do we run the average benefits percentage test on a combo basis but run the general test on a DB only basis?

Solution: You need to run a combo plan test from the DC system to run the DB test without the DC Employer NEC. The source used for the ABT must be the Employer source (source 2), and the DC employees must have no contributions in that source. Create a new source with Source Type = Employer, and set the Force Contribution field to the "Yes - Use Transactions/Input by EE" option. Use the employee grid to copy the values in the Employer source to this new source, zeroing out the source 2 contributions. When you run the DC: Compliance > 401(a)(4) test, select the Employer source for the ABT in the Basic tab. Select all the sources for the ABPT in the Basic tab. When you run the test, the Normal and Most Valuable rates on the general test should come from the DB benefits only, and the ABPT values should include all applicable DC sources plus the DB plan benefits.