FAQ 95: 410b--Status "F" employee not showing as benefiting for deferral and match tests


An employee with status code "F" (paid out and forfeited in the current year) is not showing up as benefiting on the deferral and match versions of the coverage test.


Add Group B to the Source 1 specs in the "Contrib: Groups Elig." field so that includes groups 34678AB. Group A belongs here as well, to cover status P. These source specs should reflect everyone that is eligible to make a contribution during the year. This is how the 410b tests for Deferral and Match determine who is benefiting. Make similar changes on the Source 3 specs.

You may want to change this on your A9 Pattern Plan to avoid this problem in the future, especially if you do a lot of terminating and paying in the same year.

If there are prior terminees (terminated before the beginning of the plan year), and they are status "F", they will not be included. The 410b test looks at both status codes and dates in determining an employee's placement in the test. It will treat a prior year terminee as terminated before the beginning of the year, and won't include them.