pmacduff Posted February 8, 2007 Posted February 8, 2007 Ok - have a safe harbor new comp plan, maximizing the Doc... The plan has an employee who has worked for the client for 11 years all full-time thru 2005, always a plan participant. In 2006, she worked only 243 hours but did not terminate, so is entitled to the 3% SHNEC (or 3% top heavy; same #). Can she be treated as an otherwise excludable for the plan year due < 500 hours or do I have to give her the 2% to bring her up to 5%? With the minimal amount of her comp it won't be an issue for the client but I believe she needs the gateway due to her status as a "continuing" participant.
AndyH Posted February 8, 2007 Posted February 8, 2007 Dittos. There is no <500 hour exclusion rule. There is a term & <500 hour exclusion but that is not available either because (a) not a term and (b) receipt of the SHNEC make her a benefitting employee which foils (holy shnec batman) a condition of the exclusion. P.S. Actually I don't think there is a T <501 exclusion available for purposes of separately testing for gateway purposes anyway, so I should delete this post and just agree with ak2ary but I did like the chance to interject batman so I'll leave it with this postscript.
Guest Pensions in Paradise Posted February 9, 2007 Posted February 9, 2007 ...which foils (holy shnec batman) .... LOL
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