Controlled Group and ADP/ACP Testing

[msmith]

2 separate plans of a Controlled Group - Plan A (I am TPA): Only union employees excluded and the 401(k) portion has immediate eligibility. Plan B (another TPA): Excludes Japanese employees on temporary assignment at Plan B's Company, and has a 3 month wait for 401(k) eligibility.

For the coverage and ADP/ACP testing, I have used the lowest service requirement. However, can I include the Japanese employees that have met eligibility (immediate) in my ADP/ACP tests? Plan A does not exclude Japanese employees from Plan A.

Are there any cites to either a yes or no answer?

[austin3515]

ADP test includes ONLY people eligible to defer. As for a cite, I couldn't it find it, but this is a very basic concept.

BTW, I'm assuming you want them in because most earn more than $100K, and so would help the test?