Exclusions from top paid group

[Guest lforesz]

Hi,

Somewhere I recall that when excluding employees who have not completed 6 months of service from the top 20% calculation, if the employee works any day during the month, a full month is counted. However, going back and reading the regs, I can only find this under the "normally work less than 6 months category". Does anyone know if the same applies for the less than six months of service exclusion?

For example, if an employee is hired 7/2/01, can they be excluded in the 2001 top paid group calc or does July count, putting them at six months and therefore not excludable.

Does anyone know the cite or the IRS' postion?

Many thanks!

[Blinky the 3-eyed Fish]

I think you may be confusing elapsed time provisions with what is used for the top paid election. See 1.414(q)-1T - A-9(B)(2). It says nothing about counting one day of the month as a full month.

[Kirk Maldonado]

You might be thinking about one of the equivalencies. For example, under one of them, if you work (at least) one hour during the month you are treated as if you worked at least 190 hours that month.