FAQ 277: 401a4--Excluding some otherwise eligible participants from the gateway test

Problem: We have a plan where one location does not participate in the profit sharing. Since the plan is not top-heavy and there is no safe harbor contribution, the client believes they are not "benefiting" and can therefore be excluded from the gateway test.

Solution: You should make those participants who you wish to exclude a unique status code (e.g. status "C"). Then do not include status C in the Status Codes box for the gateway test when running the 401a4 teset.