Is gateway required

[Jakyasar]

Hi

Drawing a blank.

Looking at a combo plan design which is not the way I do but asked to look at it.

DC plan provides ADP SH Match, standard 100% up to 3% + 50% between 3%/5%.

PS portion has 1000 hours plus last day rule.

2 participants terminated with 750 hours and prior to EOY however they bot deferred.

Employer wants to make a profit sharing contribution (they are aware of the additional cost as they do not have 3% non-elective SH)

The plan is also combined with a DB plan so testing together. Let's say the gateway minimum is 7.5%.

Top heavy only in the DC plan (5%) and also required last day rule.

Assuming that the terminated employees were not excluded in the DB (and not accruing any benefits), do they need to get any profit sharing as gateway? 

If they are excluded within the DB plan categorically, I do not believe they need to get any PS allocation, correct?

Anything else I missed?

Thank you

[Mike Preston]

How is 410 (b)?

[CuseFan]

Right. They may not be benefiting with respect to the gateway requirement but they are not statutorily excluded and so count in your coverage and nondiscrimination testing denominators. If your combo pass coverage w/o benefiting these two then you need not give them gateway, but then must pass NDT with them as zeroes. Deferrals and match for them only matter in determining average benefit percentages, if needed.

[Jakyasar]

Including in coverage was never in question. Passes both ratio and ABPT without them. Thank you both for your comments

[Jakyasar]

Sorry, also passes 401a4, testing is not issue. Was just concerned if I had to provide any profit sharing for gateway purposes.