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Posted

Are allocated forfeitures counted toward the gateway test? If the HCEs are receiving greater than 15% of comp and the NHCEs are receiving an employer contribution of 4.7% of comp and .3% of comp from forfeitures, is that considered passing the gateway?? Thanks.

Posted

Yes, if they are "allocated or treated as allocated to the account of an employee under the plan for the plan year". This is the language in 1.401(a)(4)(2)©(2) which is referenced by the final cross testing regulations.

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