Gateway Otherwise Excludible and ADP

[Guest chris4013]

I use the otherwise excludible method to allocate only the 3% top heavy minimum ees and avoid the gateway. My ADP test is better without otherwise excludible.

Can I otherwise exclud. for gateway and test without otherwise excludible for ADP?

[Mike Preston]

If I understand the question, yes.

[Guest chris4013]

To summarize - in case my question was confusing:

OE for Gateway - to only give the TH min. to excluded group

Will not OE for ADP - the adp def rate for the entire NHCE population is higher than the group not being excluded.

I plan to use OE for the Gateway contribution and will ADP test without exclusions.

I hope this is what you understood.

Thank you for your help.

[Blinky the 3-eyed Fish]

Think of the 401(k), 401(m) and nonelective portions of the plan as separate plans for this purpose. How you test one portion does not affect how you test the other portion (otherwise excludables used or not). What has to be consistent within each portion is the use of otherwise excludables for coverage as well as nondiscrimination.