Separate Testing of Otherwise Excludables

[Archimage]

In order to give the otherwise excludables a minimum of 3% should the plan have a separate group for otherwise excludables so as to not give them the gateway minimum (5% in this case)? Or is it okay to to just leave them as part of the NHCE group(s) they are in?

[Blinky the 3-eyed Fish]

That entirely depends on how your document reads. For example, the document I use has groups, then an overriding provision that allows for the gateway minimum to be provided (much like how TH works). Thus, the way it reads, the otherwise excludables (if that testing option is used for the year) are not required to get the gateway, even though they may be in the same allocation group as an employee that has met the statutory requirements.

[Mike Preston]

Indeed it is a document issue:

http://www.corbel.com/news/technicalupdates.asp?ID=199&T=P