Received an existing volume submitter plan (401(k)) to review. The allocation formula for employer contributions is - 3% up to $95k, plus 6.565727% in excess of $95k. That's all it states. Doesn't seem to meet the permitted disparity rules that I am aware of, not only because the intergration level exceeds the TWB but the disparity is greater than it should be.

Can you provide any insight or information that would justify the formula? And the plan filed and rreceived a favorable IRS LoD.

Received some info. on this and it would be a super-integrated formula, requiring additional (a)(4) testing for the amount not covered by the permitted disparity "safe harbor" method. Additional comments still welcome. Thanks.

We used to use a formula like this before the IRS gave pretty clear blessing to using groups. But in this case I think I'd want to rename it from "super-integrated" to "barely over-integrated" or "just a teensy bit over permitted disparity integrated" or something like that.