kmciver Posted September 18, 2003 Posted September 18, 2003 I have a 401k plan where one of the hce's never deferred. Helped out the test each year. For some reason, now he doesn't get comp for tax purposes, but still works. Can I include him in the test?
Blinky the 3-eyed Fish Posted September 18, 2003 Posted September 18, 2003 There are varying opinions, although it seems most lean to the conservative side of not including this person in the test. One strong reason is that mathematically you have no percentage to use. It's not 0% and it's not 100%. Tell him to take some compensation next time. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
AndyH Posted September 18, 2003 Posted September 18, 2003 I heard Jim Holland say (about 2 years ago) "No comp, not an employee. Not in the test. Any test."
kmciver Posted September 19, 2003 Author Posted September 19, 2003 Thanks for the reply. That is where I lean, but I was hoping for a loophole somewhere. Karen
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now