bethp38

Yes all eligible employees will be getting a SHNEC

Hi! I am working through a minimum and maximum illustration for a profit sharing contribution. I hope I have an easy question here. The plan is NOT top heavy. They give the 3% SHNEC. The allocation conditions for the PS are last day and 1000 hours of service. I have two NHCE's who terminated in 2023 and I have one HCE who was employed on 12/31/2023 but did not work 1000 hours. Can I completely remove the three of them from the New Comp testing? OR do I still need to include them in New Comp testing? If I keep them in I have to give them some PS in order to pass Gateway and/or Nondiscrimination testing. Thank you

Thank you both for your replies. Very helpful!

Are you referring to this language? Also, the Elapsed time method is selected and under this section, the "eligibility to participate" is selected

Hi! I have a small plan that has always consisted of only 4 owners. Funding their PS has never been an issue until now when they've started to hire part time employees. The coverage test is failing. FACTS: Eligibility is 21 and 3 months svc with monthly entry. They exclude part time (PT) employees 3 year Vesting PT EE #1 - Hired 5/13/2022. Termed 4/20/23. Excluded PT but met eligibility & could enter 9/1/22 PT EE #2 - Hired 5/16/2023. Termed 8/7/23. Excluded PT and termed before entry. PT EE #3 - Hired 10/11/23. Excluded PT and still working PT. Would enter 2/1/24 PT EE #1 who would have been eligible has terminated and would be 0% vested. I guess my question is an 11g amendment required here or could PT EE #1 meet statutory exclusion and be excluded from tests? If I have to do an 11g amendment and I need to expand coverage what is the best way to do so? Who would get an allocation? The one possibly eligible PT'er is gone and would be 0% vested. PT EE #2 termed before entry. And PT EE #3 is meeting eligibility in 2024. What is the solution here?