Gateway

[Guest breakwater]

I have a plan with a new comp allocation in which there are 3 designated groups. Group A is all of the HCEs, Group B is all of the other full time emplyees (NHCEs) and Group C is the other NHCEs. The allocation rate are as follows: Group A 1.47%, Group B 1.97% and group C is .5%. I say that this passes the gateway minimum, but another administrator says it doesn't but gives no reason. What do you think?

[Mike Preston]

That it doesn't look like you even need to test on benefits. Body counts, please.

[Guest breakwater]

Group A - 5 participants

Group B - 130

Group C - 15

Gateway 3:1 requirements seem to be met and all rate groups pass. Seems ok to me but what do you think?

[Archimage]

As Mike suggested you can probably not worry about it since you probably will pass non-discrim on an allocations basis. If you don't though, I do agree that you would pass the gateway minimum.

[MWeddell]

Does the plan's definition of compensation used to allocate contributions satisfy 414(s)? If so, then I agree with the other posters that you satisfy the 3 to 1 gateway but that you wouldn't have to test this on a benefits basis in the first place.

[AndyH]

Breakwater, who designed that lovely allocation formula and did he/she come from the light?

[Mike Preston]

Somebody said "probably"?????????

I have a single rate group, that has a ratio percentage of 89.66% when tested on a contributions basis and we are stuck on "probably"?

[MWeddell]

I didn't say the word "probably" but until we know whether plan compensation is a 414(s) definition of compensation, then the "probably" caveat still belongs in my opinion.

[AndyH]

Where is Donkey Kong? No longer enforcing humbleness?