Exclusion from ADP for Minimum Age and Service

[Guest kp]

How do we exclude minimum age and service in 1999 if we elect prior year ADP for NHCEs? Do we need plan amendment to exclude the minimum age and service group? (Assume all 410(B) tests are ok).

[Guest LOhmer]

I assume you are discussing the SBJPA amendment to the otherwise exludable testing testing rules.

I believe this would fall under the guidance of Notice 98-1 section VI "Changes in the Group of Eligible NHCEs where Plan uses Prior Year Testing Method".

[This message has been edited by LOhmer (edited 12-17-98).]

[Guest kp]

For whatever reason, we did not test separately for excluded group that did not meet age and service in 1998 (A). I assume that the NHCE ADP for the rest of the group (B) would have been higher had we separately tested A and B in 1998. If we were permitted, but did not separately test the group B NHCE ADP, can we go back and calculate it and carry it to 1999 (using a prior year ADP)?