Employees of foreign subsidiary and coverage testing

[Guest Jim Debs]

When doing 401(B) testing, do you exclude employees of a foreign subsidiary? The sponsor maintains sites in Costa Rica and Canada. All of the employees are citizens of those countries and work exclusively at those sites. The exclusion of non-resident alien does not seem to apply in this case. Looking for a code cite to demonstrate answer to sponsor.

[QDROphile]

What are the citizens of these foreign countries who apparently live and work there if they are not nonresident aliens?

[Guest ERead]

The last plan that I started with this situation was covered by the NRA language. IF they don't live in the States and have no reportable income from sources within the US - then they are NRA's - right? I think they'd be excluded with that provision. Otherwise - you'd probably be doing some creative writing in an individually designed plan to accomodate.