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Good afternoon to all, Is it acceptable to amend a plan for the prior plan year (PYE 12/31/2020) in the next year (now) to remove a year-end service requirement in order to pass Gateway and therefore provide a profit sharing contribution to an NHCE that wouldn't otherwise be eligible for that allocation? Seems to me the employees would benefit (more) if permitted. Or, is this only allowed to fix a failed coverage test? Thank you in advance for your thoughts on this.

Can SEP contributions be permissively aggregated for purposes of cross testing? I.e., Average Benefit Percentage Test, Average Benefit Test, and Gateway Minimum? The plan sponsor has both a SEP and a profit sharing plan in 2020 and the SEP is on an approved individually designed document. Thank you in advance.

Plan excludes pre-participation compensation, comp is paid (as opposed to accrued) Plan is Top Heavy Contributions testing on cross tested basis w imputed disparity Elig 12 mos/1000 hrs (no min age), dual entry dates (1/1 and 7/1) Employee DOH 3/2016, works 1000+hrs in initial 12 mos of svc projected Entry Date 7/2017 HOWEVER Terminates 6/15/2017, therefore never enters the plan Same employee is Rehired 12/20/2017, 1st paycheck following rehire is 1/12/2018 According to the Plan, this employee enters the Plan as of Rehire Date 12/20/2017. 2017 Total Comp is $7,000 (paid Jan 1 - 6/15/2017) 2017 Elig Comp is $0 (but for THM, which is full year) PS is determined on $0 elig comp, GW is determined on $0 (Question ... is GW satisfied because 5% GW * $0 = $0?). TH is determined on $7,000 -- $210 THMin Question How is her EBAR calculated? Is her EBAR based on $210 contrib (due to THMin) and $7000 comp, even though her otherwise eligible pay is $0? Thank you

Plan is not Top Heavy and probably never will be. 401(k) w/ Safe Harbor Match - immediate eligibility Cross Tested Profit Sharing - 1 YOS, 1,000 hours, Last Day rule, everyone in their own group. Business owners use the Profit Sharing to maximize their benefit at the end of the year. Employer wants to keep Profit Sharing contributions to an absolute minimum, excluding as many employees as possible. Prevailing Wage - may be used to offset any required SH Match, if applicable. Who gets the Gateway? Employee 1: Made no 401(k) deferrals. Got no Prevailing Wage. Met 1 YOS requirement in a prior year. Worked 1,000 hours and was employed on the last day of current year. Employee 2: Deferred 5%. Got a Prevailing Wage contribution that represented 4% of compensation. Employee 3: Made no 401(k) deferrals. Got a Prevailing Wage contribution that represented 1% of compensation. Employee 4: Terminated prior to the end of the year. Didn't defer. Got a Prevailing Wage contribution representing 4% of compensation. Where the Gateway is concerned, do I only care about employees who received the Prevailing Wage contribution, or does an employee qualify for the Gateway simply by virtue of having provided one year of service and being employed on the last day? Thanks!

We have a 403(b) Plan that has a graded 401(a) contribution rate based on Years of Service (2% for 2 YOS, 3% for 4-5 YOS, 5% for 6-8 YOS, etc.). If the plan is disaggregated for testing purposes based on YOS, does the Gateway Test need to be passed only the disaggregated segment or do all the NHCE's need to receive the Minimum Gateway on a plan level. The minimum eligibility for the 401(a) contribution is 2 YOS and age 21, so disaggregating on the basis of OE is not the question for this situation.