simple ADP test question

[Santo Gold]

If the employer excludes certain otherwise eligible employees from participating in the company's 401(k) plan, do those employees still count (as "zero") in the ADP test? They are not statutory excludable employees; its just that the employer choses to not allow them in the plan. They still pass 410(b), but must they still be included in the ADP test?

Thanks

[Tom Poje]

correct. you must actually be eligible to be included in the test. (ees who took hardships are considered eligible)

thus, as a reminder, you do not include people in the ACP test who are eligible to defer, but could not get a match because of hours or last day requirement.

[Santo Gold]

That answers that. Thanks Tom