Form 5300 - Instruction 5300 Schedule Q 2010 - Department Of The Treasury Page 3

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employer-wide basis under the special
b. The BRF has been prospectively
1. An applicant requesting a
rules for employer-wide plans, a
eliminated and satisfies the section
determination that a plan satisfies the
demonstration of how the plan meets
410(b) ratio percentage test as of the
average benefit test must demonstrate
the requirements of the applicable
elimination date;
compliance with the nondiscriminatory
special rule in Regulations section
c. The BRF is available only to an
classification test of Regulations section
1.414(r)-1(c)(2)(ii) or Regulations
acquired group of employees, and the
1.410(b)-4 including, if applicable, the
section 1.414(r)-1(c)(3)(ii).
requirements of Regulations sections
facts and circumstances determination
1.401(a)(4)-4(d)(1)(i)(A) and (B) are
under Regulations section
satisfied;
1.410(b)-4(c)(3).
Demo 2
d. The plan is a permissively
Note. The determination regarding the
Line 2 has been obsoleted, so a
aggregated plan, and the BRF is a
average benefit test is not available to a
demonstration is not required.
spousal benefit described in
plan that satisfies the ratio percentage
Regulations section 1.401(a)(4)-4(d)(5);
test.
Demo 3 – Nondiscriminatory
e. The plan is an ESOP, and the
The demonstration for the average
BRF is an investment diversification
Current Availability of
benefit test should provide, for each
right or feature or distribution option
Benefits, Rights, and
highly compensated employee (HCE)
available only to all qualified
Features
and each non-highly compensated
participants (as defined in section
employee (NHCE), the compensation
401(a)(28)(B)(iii)) or the failure of the
1. An applicant requesting a
used in the test, the allocation or
BRF to satisfy current availability
determination that a plan satisfies the
benefit being tested, and the actual
results solely from the restrictions of
nondiscriminatory current availability
benefit percentages. The average
section 409(n); or
requirement of Regulations section
benefit percentages for HCEs and
f. The plan is a permissively
1.401(a)(4)-4(b) for any benefit, right, or
NHCEs must be provided.
aggregated defined benefit/defined
feature (BRF) specified by the applicant
2. A plan that is deemed to satisfy
contribution plan; the BRF is not a
should ordinarily demonstrate the
single sum benefit, loan, ancillary
the average benefit percentage test
following for each BRF that the
benefit, or benefit commencement date
under the special rule in Regulations
applicant wants considered:
(including the availability of in-service
section 1.410(b)-5(f) must demonstrate
a. Identify the specific BRF,
withdrawals); the BRF is provided
that the plan would satisfy the ratio
including terms pertaining to the BRF,
under only one type of plan; and the
percentage test if the excludable
such as eligibility conditions, timing,
employee and mandatory
BRF is currently available to all
election rights, etc.;
disaggregation rules for collectively
non-highly compensated employees
b. Cite the plan provisions that
bargained and noncollectively
(NHCEs) in all plans of the same type
describe the BRF and all terms relating
as the plan under which it is provided.
bargained employees did not apply.
to the BRF;
5. If the BRF is available to frozen
3. In addition to the above
c. Describe any conditions on the
plan participants, show how one of the
information, the average benefit
availability of the BRF that were
requirements in Regulations sections
percentage demonstration must identify
disregarded in determining current
1.401(a)(4)-4(d)(2)(i) through (iv) is
and describe the method used for
availability;
satisfied.
determining employee benefit
d. If the BRF is contingent on an
percentages under Regulations
unpredictable event, describe the
sections 1.410(b)-5(d) and (e),
Demo 4 – Test for
contingency and determine current
including the information listed below,
Restructuring, Mandatory
availability as if the event had occurred;
under All Plans, as applicable.
Disaggregation, or
and
Note. The demonstration must include
e. If applicable, describe how the
Permissive Aggregation
the portion of the coverage test
special rule in Regulations section
Explain the basis of the disaggregation,
showing the data used in the
1.401(a)(4)-4(d)(3), relating to early
permissive aggregation, or
calculations and the calculations for
retirement window benefits, has been
restructuring, identifying the aggregated
each participant. Participants need not
applied;
or separate disaggregated plans or
be identified. However, the IRS may
2. If the BRF is an optional form of
component plans, and demonstrate
request that additional information be
benefit, ancillary benefit, or other right
how any restructured component plans
submitted if necessary.
or feature that has been aggregated for
satisfy section 410(b) as if they were
testing purposes with another optional
separate plans.
form of benefit, ancillary benefit, or
All Plans
other right or feature, respectively,
Any other plan that has been
All plans using the average benefit test
show how the requirements of
permissively aggregated with this plan
must also include the following
Regulations section
should be identified by:
information on Demo 5.
1.401(a)(4)-4(d)(4)(i)(A) and (B) are
name,
satisfied.
1. The testing period (see
plan number, and
Regulations section 1.410(b)-5(e)(5) for
3. Describe the group of employees
Employer Identification Number
an optional averaging rule).
(EIN).
to whom the BRF is available and
indicate if this group includes any
2. The definition of testing service
Describe the benefit or allocation
nonexcludable employees with accrued
(including imputed and pre-participation
formula of the other plan and indicate if
benefits who are not currently
service).
that plan has received or been
benefiting (“frozen plan participants”).
3. A description of the testing group
submitted for a determination letter.
4. Demonstrate one of the following
(see Regulations section 1.410(b)-7(e)).
with respect to the specified BRF:
Demo 5 – The Average
4. Whether the employee benefit
percentages are determined on a
a. The group of employees to whom
Benefit Percentage Test
contributions or benefits basis.
the benefit is currently available
Demo 5 must satisfy the following
satisfies the section 410(b) ratio
5. Whether permitted disparity
requirements.
percentage test;
under Regulations section 1.401(a)(4)-7
-3-

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