Does a plan that benefits only HCEs automatically fail coverage testing?

[Guest koolkidd]

Does a plan that benefits only HCEs automatically fail coverage testing?

[Guest Harry O]

That is kind of like asking "If you kill somebody, is that murder?" It depends. Need more facts.

[wmyer]

Facts such as...what kind of a plan is it (457, 401k)? What are the plan's eligibility requirements, and did any NHCEs meet them? Does the employer only employ HCEs?

[actuarysmith]

Not if there are only HCE's eligible for the plan..............

[AndyH]

.....unless it is aggregated with another to pass coverage.

[jquazza]

If your coverage testing group consist solely of HCEs, you're deemed to pass coverage.