Participant gets contribution but shown as not benefiting

[Guest AlCal]

Mid year entrant gets correct contribution based on half year comp. However discrimination tests show him with $0 benefit( not benefiting). I checked the average NHCE rate and indeed it was included as not benefiting in the test. In other words it was not a "report" bug only. Any ideea why it happened and how it coild be corrected?

Thanks....AC

[Tom Poje]

to be considered benefiting for the nonelective portion, the system looks to see if the ee actually received a contribution or forfeiture in his account. I have never seen it do otherwise.

if the contribution is due to top heavy, then you have to check

'unsafe harbor' on the nondiscrim screen. (of course, if it is top heavy, he should get a contribution based on full year comp)

the safe harbor/unsafe harbor toggle is in accordance with the nondiscrim rules. an ee is treated as benefiting if he receives a top heavy alloaction. on the other hand, for the plan to be considered safe harbor, the person is treated as includable and not benefiting....