Non Resident Aliens WITH some US Income

[Guest John Makarevich]

My question is, and I think that I know what the answer is (except that I am at home today and don't have all of my resources available. I am reviewing the work of our plan admins. The plan doc excludes non-resident aliens (Canadians in this case). 2 employees fall into this catagory, except that they both have some US income (reported as taxable on their split W-2's) and some Canadian Income (reported as not taxable).

Am I correct in assuming that their US income is not excludable in the 401(k)/PS Plan, and that they would get a share (based on their US income) of the Cross-tested profit sharing contribution?

Please advise, thank you very much.

John Makarevich