Guest TPA4ADAY Posted February 7, 2005 Posted February 7, 2005 A Sub-S Corporation sponsors a cafeteria plan. The 100% owner and his spouse do not participate. There are two additional HCE's who have 0% ownership. When performing the first part of the ratio percentage test for eligibility, is the ratio percentage for the HCE's 100% because all of the HCE's (including the owners) are nonexcludable or is the ratio percentage 50% because the owners are precluded from participation due to Sub-S status?
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