FAQ 284: Budget--Decrease High option not finding a solution for cross-tested plan

Problem:

There are 3 HCEs - two in group 1, and one in group 3. I need to run an estimate giving 5% to group 2, 3% to group 3, and solving for Group #1. This is where I run into a problem. I can't get ASC to solve for Group 1. I have attached the files for the plan.


Solution:

The problem is the minimum gateway setup in the Budget screen. From the plan specs, it looks like only those eligible for the standard profit sharing must receive the gateway since the plan is not top heavy and there is no safe harbor contribution.
As a result, you need to change the Budget setup for the gateway test from the default of statuses ABCHMN and 1 hour to statuses ABC and 900 hours as coded in the Source 2 specs. Once you change this setup, the budget should run, solving for group 1.

The "Calc. (Decr. High Group)" option should always find a "pass" unless there is a gateway problem. You can test to see if the gateway is, in fact, the problem by running the budget routine and unchecking the "Calculate Mininimum Allocation" box so that the gateway test is not performed. If it finds a solution, then the gateway coding is the problem. You cannot use this solution, as you do need to cover the gateway, but it is a good troubleshooting tip.