401(k) ADP test - include terminated eligibles?

[Guest Jeff V]

I used to know the answer to this, but now I'm searching all over and can't find it anywhere... when doing the ADP test, do we need to include "eligibles who terminated during the plan year" too, or just actives?

[Tom Poje]

you have to include anyone who could have deferred(e.g. they met plans age and servide requirement for eligibility), thus you must include anyone who terminated (even if they defer 0).

The ACP would be different. you exclude those ees who could not get a match due to hours or last day provision.

[stevena]

Tom,

Remember the LONG discussion we had on a previous post regarding the excludables on the ACP test due to last day requirement etc.? (I was taking my exam...?)

My boss is just agonizing over this...cannot believe it can be true. Hope to see you at ASPA in October? He says he is just dumbfounded by this-for a variety of reasons...would love a discussion in Washington!

Lisa

[Tom Poje]

Lisa:

I can't remember what I was doing 10 minutes ago, you expect me to remember farther back?

I have to be there at ASPA. I am scheduled to give one of the talks, believe it or not

401(k) Testing Hierarchy for Beginners

so I decided to add that particular question to the list to be covered.

Ugh. Monday, 4:15 - 5:30. After everyone is burned out from sitting in talks all day. Oh well, it will be a lively talk, I think the scarecrow from the land of Oz might show up and use that marvelous brain the Wizard gave him. I think he discovered an original version of "Yesterday" by the Beatles, the one that was written about 401(k) plans as well. You just never know!