FAQ 36: ADP--Override who is included in the test

Problem:

Is there a way to override the eligibility for ADP/ACP testing? I have a client with a few employees that ASC is correctly considering to be ineligible (based on their hire dates). However, these employees were acquired from another company and were granted immediate eligibility into the plan. I can change the hire dates so that they will be considered eligible, but is it possible to just override?


Solution:

No. You cannot override who is in the ADP or ACP test. You'll have to change the employee record to indicate that they are eligible (status ABC) and that their date of entry is prior to the end of the current plan year.