FAQ 119: 401a4--Disaggregated test including ineligibles in the main group

Problem: Their hire date would have been early enough, but they never worked 1000 hours. They are still being included with the first group (1 year of service) for 401(a)(4), when they should appear in the second group (statutorily excludable). How can we code them to put them in the second group? Do we need to put in hours history in their record?

Solution: Yes, enter hours history and it will recognize that they never met the hours requirement. If the participant has a blank history record, or no history record, the system assumes they were a full time employee since their date of hire.