Schedule T Line 3 exceptions

[Richard Anderson]

All nhces and hces benefited for the 401k part of the test.

There was no matching contribution, so no hces benefited for the 401m part of the test.

On line 3, can I check box 3d for the 401k part and also check box 3b for the 401m part of the test?

Or must I go to line 4 and enter information on each disaggregated part of the plan?

[wmyer]

You should just check "3d." For the matching 100% of non-excludable NHCEs benefited, because by IRS mathematics, 0/0 = 100%.

[Kristina]

Per PWBA, if all disaggregated portions of a plan can qualify under the exceptions listed in 3, then mark the appropriate sections and forget page 2.

However, if there were a psp portion to your plan and a contribution was made to only those who were employed on the last day of the plan year or who completed 1,000 hours, then page 2 would have to be completed.

By the way, 3b is the accepted check for no er contribution.

[Richard Anderson]

Thanks Kristina,

That's what I thought, but someone in the office here thought that if you had disaggregated portions of the plan, then that required you to fill out line 4.