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minimum gateway clarification - the 1/3% test


TPApril

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It's late Friday in the heat of extended 5500 season, so perhaps I'm not thinking straight...just need to bounce this off someone.

Situation:

Xtested Plan; highest rate to HCE = 20%

NHCE's receive 10%

Comp counted from date of entry

Conclusions:

Therefore all NHCE's receiving an allocation must receive at least 5% since 1/3 of 20% > 5%.

At 10% that's all fine except for new participants.

Is it correct that they must receive at least 5% of full year comp?

Where I'm fuzzy is if there is some 1/3% test we can apply to each participant?

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