Brenda Wren Posted October 1, 2002 Posted October 1, 2002 How do you correct a failed coverage test for a 401(k) plan that excluded a classification of employees? Looks like I need to benefit at least 2 more employees. Assume no matching contribution was made, only employee deferrals. Document only provides direction about who should benefit, not how they should benefit.
E as in ERISA Posted October 1, 2002 Posted October 1, 2002 The employer must make QNECs for the persons who are added back in -- the rate of QNEC is based on the other NHCs average for the year. See Reg Sec 1.401(a)(4)-11(g)(3)(vii)
AndyH Posted October 2, 2002 Posted October 2, 2002 What about the same question for a plan that fails 410(B) on the match but passes on the deferrals? Same answer?
E as in ERISA Posted October 2, 2002 Posted October 2, 2002 Yes. See Reg Sec 1.401(a)(4)-11(g)(3)(vii).
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now