Cross testing - ineligible

[pixmax]

I have a plan that is cross tested/Safe Harbor. Several participants do not meet the last day hour requirement and have been given an addtional percentage to meet the gateway. The client wants to move one of these employees to another group with a higher percentage. Can they? My thought is that he is ineligible and is only receiving the minimum to meet the gateway.

[BG5150]

Why would they get a gateway if they aren't eligible for the Profit SHaring? Are they getting someother sort of non-elective contribution like Top Heavy?

[Tom Poje]

you must follow the terms of the document, so you can't simply give the individual an 'extra' contribution via that route.

if plan failed testing, you could bump someone up via an -11(g) corrective amendment.

of course, if your document is old enough and hasn't been amend to include gateway language, then you would have to do that anyway. you can't simply give the gateway unless your document says so.

[Bill Presson]

Why would they get a gateway if they aren't eligible for the Profit SHaring? Are they getting someother sort of non-elective contribution like Top Heavy?

I'm guessing they are getting a safe harbor contribution, since he mentioned that.

[BG5150]

I'm guessing they are getting a safe harbor contribution, since he mentioned that.

Wow, what great atetntion to detail I have!!