My understanding is that ESOPs can not be aggregated with Non ESOP plans and Non ESOP portions of plans for coverage and non discrimination testing with the exception of calculating the average benefits percentage test.
A company sponsors an ESOP (actually an ESOP and a Money Purchase ESOP) and a Cash Balance Plan. It appears that the plans have been aggregated for general testing purposes for the Cash Balance Plan (since testing the benefits in the Cash Balance Plan alone does not resemble anything close to a passing test).
I will be getting more information (such as what was submitted with the determination letter), however I do not believe that this is permitted according to the 410 and 401(a)(4) regs. Agreed?