Santo Gold Posted January 12, 2007 Posted January 12, 2007 A 401(k) Plan (no safe harbor) has a 1000 hours/last day rule for match contributions. There are 2 HCEs and that out of 10 NHCE participants, 2 terminate with more than 500 hours during the year. However, the employer makes no match contribution for the year. Is the 410(b) test for the 401(m) contributions automatically satisfied since since no one received a contribution? Or, does the test still need to be performed, with an 80% result, because of the 2 terminees? Thanks
Below Ground Posted January 13, 2007 Posted January 13, 2007 No allocation, including forfeiture amounts, means nothing to test. Having braved the blizzard, I take a moment to contemplate the meaning of life. Should I really be riding in such cold? Why are my goggles covered with a thin layer of ice? Will this effect coverage testing? QPA, QKA
BG5150 Posted January 19, 2007 Posted January 19, 2007 The 80% still passes...no worries. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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