HCE in Iraq - Is he in the ADP test

[Guest annieap1]

The son of a 50% owner has worked part time. In 2000 and 2001 he worked 1000 hours during each of those calendar years. In 2004 he attained age 21 and his entry date is 7/1/04. However, he is in Iraq.

Do I include him in the ADP test with zero comp and zero deferral? Our document provider said "yes". I realize that there may be Userra issues once he is back home, but am concerned about his being in the test with zero, zero. Having him in the test, of course, helps the HCEs.

[actuarysmith]

Go see this other post - this has been discussed ad nauseum.........

http://benefitslink.com/boards/index.php?showtopic=23366

[Guest annieap1]

Actuary Smith - thanks for your response. However, even though it has been discussed ad nauseum, I have two different responses: Document provder says "yes", all BenfitsLink answers seem to be "no". I've just now contacted answers@tagdata.com for another opinion.

Basically, I would say No.

[Blinky the 3-eyed Fish]

I have said this before, but ask the document provider what % to use in the ADP test for someone with $0 compensation. Then have him explain why he doesn't remember his math classes in school.

[QDROphile]

Hey Blinky, you are mentioned on the tagdata website! Go check it out!

[Blinky the 3-eyed Fish]

Can't - no access.

[QDROphile]

Go to www.tagdata.com, click on About Us and then click on Fees. You are toward the end.

[Blinky the 3-eyed Fish]

Ah yes, thanks. He has a point. If I were any of you I certainly wouldn't tell anyone you got advice from a fish. Although, with any advice taken you should have a well-reasoned and thought out answer and cites if applicable so that you can be sure you aren't fed by someone who is "full of crap". One other note. I have found it invaluable to research items myself instead of being spoonfed answers. You don't learn that way.

I copied a paragraph of what was said for all to see.

"Or, this one, “We like to research things ourselves on the Internet. Everything we need is available and it's free!” Well it's not free, first of all you spend your most precious asset, your time. Secondly, the information you receive might not be up-to-date. Additionally, some of the answers and opinions obtained from free sites are just plain wrong. I acknowledge that the Internet is a great source of information. However, pensions are not your hobby, it’s your livelihood. What would your customers think if they found out that you are receiving advice from an unknown source named ‘Blinky the three eyed fish’?"

[E as in ERISA]

The final regs provide the answer on what happens when he returns and makes up contributions

1.401(k)-2(a)(5)(v) Additional elective contributions pursuant to section 414(u). Additional elective contributions made pursuant to section 414(u) by reason of an eligible employee’s qualified military service are not taken into account under paragraph (a)(4) of this section for the plan year for which the contributions are made, or for any other plan year.

[AndyH]

Ooh, Blinky, I'd be spouting off if I were you. That is quite arrogant.

I have found your answers and those of others on these Boards to be much more complete and accurate and useful than theirs on advanced topics. They handle the simple ones fine.

But at least you are famous now. Kind of like Steve Martin finding his name in the phonebook in "The Jerk".

[Belgarath]

As an avid fisherman, I have the utmost respect for piscine intelligence and cunning.

Your comment about researching questions for yourself is on the button. One of the things I find most useful about these boards is that they force me to look up questions I might not otherwise encounter, or might THINK I know the answer, and often don't. Alternatively, sometimes I come away convinced I'm right.

So ignore the naysayers - I find your commentary intelligent and useful, even though on rare occasions I might not agree.

[Blinky the 3-eyed Fish]

I didn't take the comment as my posts being incorrect. I took it as him pointing out that you don't know from whom you are receiving information and that you certainly wouldn't tell a client you got your information from a fish. So no worries, the comments weren't derogatory.

(Noticed a misspelling)

[austin3515]

Now that Tagdata has endorsed, you I just might tout your name!

Kudos to you for having the most creative name on the board.

Funny they didn't say "would you get your answers from Tom Poje, author of the nondiscrimination and answer book..." or Kirk Maldonado of the "Maldonado letter.."

[could be me maybe not]

Hey Blinky, they ought to at least give you a free subscription!