Coverage testing

[Guest yogibala_008]

Who would be regarded as a non-excludable non-benefiting employee in coverage testing for a DC plan?

[Tom Poje]

since this is a 401k forum, then I would assume that your question pertains to the different 'plans'

401(k) includale, benefiting if eligible to defer even if one doesn't

401(m) includable and benefiting, even if they deferred zippo - unless their is an hours or last day requirement they failed to meet.

nonelective - includable and benefiting only if they received a contribution or forfeiture.

terminees with less than 500 hours may (optional) be excluded from the 401(m) and nonelective test if they received zippo

if an ee is otherwise ineligible (failed service or hours requirement to enter the plan) then they are exludables.

that should cover most of the people, unless you have a specific situation. thus, an ee who is excluded by name from the plan is includable and not benefiting once he meets the age/service requirements