When doing 401(B) testing, do you exclude employees of a foreign subsidiary? The sponsor maintains sites in Costa Rica and Canada. All of the employees are citizens of those countries and work exclusively at those sites. The exclusion of non-resident alien does not seem to apply in this case. Looking for a code cite to demonstrate answer to sponsor.

What are the citizens of these foreign countries who apparently live and work there if they are not nonresident aliens?

The last plan that I started with this situation was covered by the NRA language. IF they don't live in the States and have no reportable income from sources within the US - then they are NRA's - right? I think they'd be excluded with that provision. Otherwise - you'd probably be doing some creative writing in an individually designed plan to accomodate.