i thought i heard somewhere that using the 5.7% - full TWB formula was deemed to pass general non-discrim testing....
can anyone confirm this?

thanks

2002 erisa outline, chapter 10 section 3,(page 10.9) talks about safe harbor definitions for integration for dc plan.

if a plan uses
1. up to 20% of the taxable wage base or
2. 100% of the taxable wage base

the plan is deemed to be a safe harbor plan and normally doesn't need to be tested under general non-discrimination.

on the other hand, if you have employees who received top-heavy only, you are only considered safe harbor is the plan passes coverage by treating these people as includable and not benefitting.
(Otherwise you end up with a cross tested plan with 2 classes - one at 3% and another with an integrated formula.)
.....
I've told people to try this before, run the numbers with 5.7% integrated at 100% TWB, then try nondiscrimination testing using the allocation method and imputing disparity. Your E-Bars should all be the same!

thanks for the info Tom, your thorough responses are always very helpful and appreciated!