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Posted

There are three partners that are more than 5% owners. The partners had negavtive earnings for 2007. Do you count them in the 2007 ADP/ACP test?

Posted

years ago at an ASPPA conference the IRS personal indicated it would be 'reasonable' to treat such ees as not eligible, that is, don't include them at all.

but there is nothing in the regs that addresses this issue.

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