Accrued to Date Testing

[Guest Michele Ciz]

When using the accrued to date testing method, I know that you must add back in distributions made to HCEs, and you have the option of adding back in distributions to NHCE's. Does this also apply to loans? If an HCE took a loan from his/her employer contribution source, does the outstanding loan balance get added back in?

[Tom Poje]

I would think so. in one sense of the word a loan is not really a distribution, it is sort of like a particular investment for the individual