FAQ 389: 401a4--Gateway % is based on post-entry comp when full year was selected in the 401a4 setup

Problem: Shown on the attached .pdf file are three employees who became participants during the plan year. The minimum gateway percentage for these participants is being calculated using post-entry compensation instead of full year's compensation as coded when running the a4 test. Please note that we coded the a4 test to use post-entry comp for the a4 test only.

Solution: The selection for the gateway compensation is separate from the a4 test compensation, so be sure to click on the "Gateway Test" button in the a4 setup and check that coding. If these selections are being made properly, check the fields on the Override Test Compensation (TESTCOMP) screen. If an override comp has been input for 401a4, then this comp is used for all aspects of the a4 test, including the gateway.