FAQ 503: ADP--HCE in statutory group, but under 21; different for 410b

Problem: Attached is a portable copy of the plan. We are running both the ADP test and the 410b test with disaggregated test results using plan eligibility for both tests. The participant in question is in the non-statutory group on the 410b tests, but in the statutory group on the ADP test. When you look at the Disaggregation Support Page on the ADP test, his calculated date of entry is 01/01/2006 but under the meet statutory minimum column it says Yes. Can you please review?

Solution: The participant is an HCE, so he is automatically put into the main statutory group on the ADP test. On ADP only, the law provides for 2 choices when it comes to disaggregating employees: 1) Run 2 separate tests and each must pass, or 2) Put all the HCEs in the main test and only the main test must pass. The non-statutory group does not have a test run, because it automatically passes with no HCEs. ASC has chosen the second method in its programming, so he is put in the main part of the test. If you would like him to be in the non-statutory group, you can work around the system by entering location numbers in the employee records and running the test by location. The 410(b) test, and all other tests that allow for disaggregation, must be run using the first method when disaggregating.