FAQ 512: 401a4--Average Benefits Test when the 410(b) ratio test fails

Problem: How do I run Average Benefits Test when a plan fails coverage?

Solution: https://asc-net.wistia.com/medias/k6ek93w2zl Run Reports - Compliance - 401(a)(4), but for the Method for Rate Grouping on General Test, select "0 - No method selected (coverage only)". It will then only print the ABT/ABPT rates pages. Review these results, along with the 410b ratio test results, to see if you pass average benefits. If the "100% NCE Average" is greater than or equal to the "70% HCE Average" *and* the 410(b) ratio percent is greater than the Safe Harbor Ratio, the Average Benefits Test passes. This is outlined in the "Miscellaneous Notes" section of our 401(a)(4) documentation, which can be downloaded from our website. Also check Help-Manuals-Compliance manual and the 401(a)(4) Appendix