nonstandardized plans

[Guest lskin]

If you can meet the minimum participantation requirements could you exclude employees who work more than 1000 hours in 12 months but are not considered full time in a nonstandardized plan?

[WDIK]

Other than the statutory 1000 hour level, I do not think that it is permissible to exclude participants based on hours worked under any type of document.

[Belgarath]

It depends on your exclusion classification. The IRS issued Quality Assurance Bulletin FY-2006-3 in February. This type of exclusion (and others as well) will be scrutinized very carefully. If, for example, you exclude "part time" workers, then it would seem likely that your document wouldn't be approved, even if you could pass coverage testing. Now, if all the "full time" workers are salaried, and all the hourly employees are part time, and you exclude hourly employees, then this should be ok - subject to coverage testing of course.

My guess is that they are not going to be real user friendly" on this issue in general..