414(S) COMPENSATION TESTING

[Guest MCKEL]

When doing 414(s) compensation testing for a plan year, can we exclude otherwise excludable employees ( as we would in adp testing?)??

[buckaroo]

I am not sure of the answer, but I would guess that you would have to take into account all participants. I do not recall seeing anything about excluding the OEEs. Furthermore, I would think it would probably follow along with the top heavy rules in that if a participant is eligible for the plan (whether or not an OEE) than he would be eligible for the TH min.

Sorry I cannot be more helpful.

[Tom Poje]

my logic and reasoning (which has been wrong plenty of times) would be as follows:

1.414(s)-(1)(d)(3)(iii) the employees taken into account are the same employees taken into account in satisfying the requirements of the applicable provision for the determination period.

so, if my a(4) test consisted of statutory included only, I would say you include only those same people in determining the 414s test

[ak2ary]

In fact, you would in theory run a separate 414(s) test for the group of otherwise excludables

[AndyH]

But you're only including those who benefit, right? That would make a pretty weird test or two. (Obviously this is not a big issue for a 401(k) plan - but it would be an issue for other types of plans)