FAQ 159: 410b--Including terminated, forfeited but rehired participant

Problem: A participant has terminated and forfeited, but is receiving an allocation because he was rehired. The standard test is working fine, however, the matching is saying he is non excludable and not benefiting.

Solution: Go into the source 3 matching specs and add group B (status code "F") to the "Contrib: Groups Elig." field. The matching and deferral 410(b) tests read from the "Contrib: Groups Elig." field in the source specs to determine who is eligible and benefiting. The standard test (profit sharing), on the other hand, reads whether or not the participant has an allocation on his or her Contributions (CONTRIB) screen for determining benefiting status.