Section 129 Nondcrim. Testing

[jpod]

Has anyone seen ANYTHING from IRS that provides some guidance as to how to perform the 55% average benefits test? A related question is this: Assuming one feels confident that he or she knows how to apply the test, and you perform it during the year so that you can adjust participation by HCEs in order to avoid flunking the test, isn't the test a moving target such that you can't predict the results with any certainty? For example, if all of a sudden near the end of the year you have one or more NHCEs drop out of the plan (under the change in status exception), won't that require a corresponding adjustment to HCE participation (assuming it's not too late)? Is everybody ignoring the test and IRS is looking the other way, and I just don't know that? Thanks for any insight.