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Showing results for tags 'statutory exclusions'.
Found 2 results
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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? -
I have a plan that tests the adp/acp using prior year testing I ran the test for 2022, and fail. However if i test using statutory exclusions I pass. The plan was not tested using statutory exclusions in 2021. So the NHCE average when i did 2021 shows 3.46% but when i run the adp test for 2022 using stat exclusions, it changes the prior year to 3.70%. I understand why... Question is, can i switch back and forth using statutory exclusions from year to year if needed? Thank you!
