FAQ 415: 410b--Overriding the 410b benefiting indicator for those employees that receive the top-heavy minimum only


Is there a way to run the 410(b) coverage test without showing as benefiting the people who are receiving a top-heavy contribution only?


Yes, there is an option called "EEs w/TH cntb only don't benefit". This option become enabled when the 'Standard Test' option is selected.

Also, we developed a spec in the employee record to override the benefiting indicator for this, and a few other scenarios that clients wanted to change. Go to the Other Tests (OTHERTST) screen in the Compliance section of the employee record and change the indicator for that particular test to "Excluded". This is an override code that will tell the system to read them as not benefiting, regardless of their status code or contribution in their record. In terms of the responses to this question, "Yes" and "No" are system calculated, and "Excluded" and "Included" are user overrides.