FAQ 493: 401a4--Excluding some actives from the gateway test


I have a group of employees who are not eligible for the standard contribtution in a plan that is *not* top-heavy and not a safe harbor plan. There is only one eligibility. They are not required to receive any contribution - so we believe they are determined as not benefiting and can be excluded from the gateway test. How can I do this on ASC?


You will need to separate them out using status codes. For example, make some status "A", and others status "C", then include only status "A" (or "C") in the Status Codes field for the gateway test. You could also separate them by hours, but be careful to select out the right people and not to harm vesting calculations.