Gateway Compensation & Inclusion

[Hoard1]

Datair is only testing employees benefiting for the gateway tests thereby excluding terms because plan does not allocate to them.

Additionally, for purposes of 415© Compensation for the 5% gateway they indicate that you can exclude any compensation prior to a participants entry date.

I was under the impression that the 5% gateway had to be for all eligible participants and that the 3 times allocation rate was based on employees benefiting.

Any thoughts?

[AndyH]

That's not true. The gateways apply to employees who benefit only. Anyone who gets an allocation (top heavy minimum for example) is subject to the gateway, so 3% might have to go to 5%, but a 0% does not have to become 1/3 or 5%.

And, the final regulations allow the 5% gateway to be based on post participation comp. That was a change ASPA pushed for.

[Hoard1]

Thanks with some addition research i came to the same conclusion. Looks like Datair has it right!