FAQ 129: 410b--Excluded employees in 410b coverage test

Problem: I am trying to "set" HCEs eligible and not benefiting by using status codes. I know that an E status code will consider them eligible and not benefiting. I also set their Exclusion status to "Yes". Why are they not included as eligible/not benefiting? What am I doing wrong?

Solution: Excluded employees are considered eligible and not benefiting under 410(b). Check the following: 1. Make sure "E" is coded for all three status code fields. 2. Make sure that they have an entry date and no termination or rehire date. 3. Make sure the source specs don't have group 2 as an eligible group.