BG5150 Posted February 7, 2017 Share Posted February 7, 2017 I have a plan with 1 HCE and 2 NHCE. Last day rule for this PS only plan. One NHCE terms with 200 hrs of service. Can I exclude him from the ABT test for contributions? (I believe I can for coverage) QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Mike Preston Posted February 7, 2017 Share Posted February 7, 2017 If you exclude him from coverage, then he is excluded from the ABT. If not excluded from coverage (and it is frequently far less expensive to include such an individual), then he is included. Link to comment Share on other sites More sharing options...
BG5150 Posted February 7, 2017 Author Share Posted February 7, 2017 I thought so, but I wanted to make sure. In this case, it's cheaper to keep him out. He's not benefitting, so my rate group coverage is (1/1) / (1/1) QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
K2 Posted February 8, 2017 Share Posted February 8, 2017 As long as he doesn't receive a contribution, he's excludable. Link to comment Share on other sites More sharing options...
Mike Preston Posted February 8, 2017 Share Posted February 8, 2017 kcbirm, Just to nit-pick a bit (but not much), as long as he doesn't receive a contribution, he's eligible to be treated as excludable. Take, for example, the case where he is an HCE. In such a case, it is usually advantageous to not treat as excludable. It is an option provided to the Plan Sponsor. Link to comment Share on other sites More sharing options...
BG5150 Posted February 8, 2017 Author Share Posted February 8, 2017 But you can't pick & choose, right? I can't have two people in the same situation and only have one be treated as excludable. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Mike Preston Posted February 8, 2017 Share Posted February 8, 2017 Correct. You can't. Link to comment Share on other sites More sharing options...
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