I have two plans that need to be tested together for 410(b), but they have different plan years: one is calendar the other is Oct-Sep.

How do I go about that? Do I just test the portion of the plan year that over laps?

Why do they "need" to be tested together?

I'll just add on that if it's a need to pass coverage, that means you are attempting to permissively aggregate the plans. One of the requirement to do that though is that the plans have the same plan year.

The plan adminstrator told me that the parent company told him that his plan had to be "tested" along with the parent and one of the sister plans. i'm guessing one of the other two plans is not passing on it's own. my client, i believe, is a qslob, but we'll find out for sure soon. we've been testing only my client in the past.

but the crux of my question, i think, was answered. if the plans are permissively aggregated, they have to have the same plan year.

if they are required to be tested together, what then? (meaning two different plan years)

(sorry if i'm a little incoherent, but it's been a LOOONNNNGGG day (week))

Under what circumstance do you feel they would be required to be tested together?

If one of the plans is failing the ratio percentage test, they would be required to be tested together in the ABT.

it's not me, but the plan administraor. he gat an e-mail from the parent comapny. hopefully, i will be speaking with both of them in a few days.

Dietpepsi, your statement is incomplete. The ABT test is a 2-part test, the nondiscriminatory classification test and the average benefits ratio test. Permissive aggregation is what applies here if choosing to test the plans as one for the first part of the test. For the second part of the test, all benefits are considered, no matter the plan year ends.

It is the coverage ratio, i.e. the first part of the test, that appears to be the problem here.

Brian, I am curious as to what you find out.