FAQ 277: 401a4--Excluding some otherwise eligible participants from the gateway test


We have a plan where one location does not participate in the profit sharing. Since the plan is not top-heavy and there is no safe harbor contribution, the client believes they are not "benefiting" and can therefore be excluded from the gateway test.


You should make those participants who you wish to exclude a unique status code (e.g. status "C"). Then do not include status C in the Status Codes box for the gateway test when running the 401a4 teset.