Fred Payne Posted December 19, 2002 Posted December 19, 2002 W-2s provide for an indication if the Employee is "covered" by a Qualified Pension. This helps the participant to determine if his or her IRA contribution is deductible. If a Plan allows immediate eligibility to defer in to the 401(k) but has a Year of Service requirement to receive a nonelective or matching contribution, is the Participant who would otherwise be excludable for Coverage Testing of the Employer contributions still considered "covered" when it comes to completing the W-2? Yes, I know I must still include such a participant in the ADP test. Thanks.
E as in ERISA Posted December 19, 2002 Posted December 19, 2002 Did the participant make any elective deferrals?
Guest Giovanni Posted December 19, 2002 Posted December 19, 2002 If the participant did not make a deferral, then I change my answer to "no". Sorry, I assumed he was deferring.
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