Deductibilty based on compensation of participants not deferring

[dmb]

I know that compensation of participants that are eligible to defer, but elect not to, is included for determining the maximum deductible contribution to a 401(k) plan, but do not have a referral cite. Does anyone have a cite that refers to this?? Thanks.

[Tom Poje]

that might not be true any longer. I vaguely recall an ASPPA session that said since deferrals no longer are counted toward the maximum deduction, you can't use ees who get no other contributions.

but it is after my 4:15 limit on a Friday as well, so I am not about to try to look that up at this point in time.

[Guest EPS2]

I have a similar question.

New comparability Plan with 401(k) provision.

Dual eligibility: three months of service for 401(k), and one year of service for PS

A terminated employee does not get an allocation of PS, regardless of hours credited.

I ran it on Relius, and found that it did include those that are eligible to defer, but that did not, AND it also included the one and only terminated employee that was eligible to make a salary deferral, but did not, and was not eligible for the PS allocation because of being terminated.

Is this correct?

I thought that the regs said that a terminated parcticipant, that was not eligible for the PS allocation should not be included in the max deductible calc.

Could anyone tell me where I could find guidance on this?