Correcting 401a4 - Gateway for corrections?

[Guest chris4013]

New Comp plan. I want to give the least amount of PS contribution. I have two non excludible NHCE participants, 1 of which does not meet the accrual rqtmts, significantly impacting my 401a4 test. If I give a very small contribution to this participant, making a corrective amendment, I can pass, but I won't meet gateway. Do corrective contributions need to meet gateway, when they do not meet the accrual requriements for a contribution?

[g8r]

When you make the corrective amendment, you are in essence waiving the accrual requirement. But, regardless of how you view it, the individual is receiving an employer contribution and must get the gateway if you want to use cross-testing to pass (a)(4).

[Archimage]

You also might want to make sure you are not missing a couple of things. If the plan is top heavy and the participant is still employed, you will have to give them the top heavy and gateway minimum. It sounds like you also fail the ratio % test for coverage. If your document has failsafe language then you will have to give them a contribution.