Logan401 Posted January 24, 2023 Share Posted January 24, 2023 To keep this simple, I will use two HCEs and two NHCEs that are being tested for nondiscrimination. All 4 employees are non-excludable. Can one HCE & one NHCE receive an allocation, and the other HCE and NHCE receive $0.00? 410(b) test would be 100% Each employee is in their own group, and the plan does not have the SHNEC to trigger the minimum gateway. Thank you! Link to comment Share on other sites More sharing options...
C. B. Zeller Posted January 24, 2023 Share Posted January 24, 2023 Is the plan top heavy? Bill Presson 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Logan401 Posted January 24, 2023 Author Share Posted January 24, 2023 No, not top heavy. Link to comment Share on other sites More sharing options...
C. B. Zeller Posted January 24, 2023 Share Posted January 24, 2023 Then, barring any unusual plan provisions, it should be fine. Bill Presson 1 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
Logan401 Posted January 24, 2023 Author Share Posted January 24, 2023 C.B., that is great news! My thought processes said "Yes", but I think I am second guessing myself. As long as it passes cross testing too, then this is viable. And, on a larger scale, say 12 HCEs & 61 NHCES non-excludable, if 8 of 12 HCEs receive an allocation, then only 29 of the 61 NHCEs must receive an allocation to pass coverage (71.31%). Agree? Link to comment Share on other sites More sharing options...
C. B. Zeller Posted January 24, 2023 Share Posted January 24, 2023 Unless there are some special circumstances, then I agree. Logan401 and Bill Presson 2 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
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