Min. Gateway

[FJR]

I am sure this has been asked, but appreciate a comment. Have X-tested plan that is not top heavy. No SH requirement. Plan has last day and 1000 hrs. If a participant has < 1000 hrs and is employed, he still needs to get the min. gateway?

If yes, then what do you do about the document. We use Vol Sub. through Corbel

Thanks

[Tom Poje]

the gateway must be provided to anyone who has received a nonelective contribution. since the plan is not top heavy, and the ee failed the hours requirement, the ee would not receive a nonelective, and therefore no gateway.

if enough people fell into this category you could fail coverage.

and of course, assuming such ee is a particpant, he would show with a big fat zero on the test.

[FJR]

I am probably confusing it with Top Heavy. If the Plan was TH, then you would have problems? What would you do about this regarding the document. My understanding is the EE could not pass the gateway with just the 3%. Document doesn't provide for additional contributions.

[Blinky the 3-eyed Fish]

You would need to amend the plan, potentially under 1.401(a)(4)-11(g). Even though I don't use Corbel, I am sure they have issued an amendment for this purpose.

[Tom Poje]

yes, Corbel has an amendment for the gateway language. My understanding is that they had submitted their volume submitter for approval before the language came out. It is my understanding that the special gateway language will not take the document out of 'approval status' or whatever terminology is used, but what the heck do I know.