FAQ 752: 410b--How to code a group of employees that are excluded by class


I have a group of employees who used to be leased employees. Because they were not given the opportunity to participate in the plan, I need to run the coverage test showing they are not benefiting. How should I code these employees?

Also, some of them do not have one year of service and/or are younger than 21 yrs old. They should be in the otherwise excludable group.


Code this group of employees with a Primary Exclusion Status of "Yes" on each employee's Dates and Status (DATE) screen. If they are under 21 and 1 year of service, the system should properly calculate them as such (status SY) and exclude them as out for age/service. Those that met the eligibility will be calculated as a status E and included in the 410b test as not benefiting.