"otherwise excludable" ADP testing and cross-testing

[Craig Garner]

I have a 401k plan with cross-tested profit sharing. Eligibility is from date of hire for 410k and profit sharing. All participants get a profit sharing at the end of the year except terminee's under 500 hours, so all non-excludable plan participants benefit for profit sharing coverage and discrimination testing.

The ADP test fails. Can I restructure the ADP test into "otherwise excludable" and "statutory eligible" participants even though I'm using all participants to test the profit sharing? In other words, is there any consistancy requirement between my testing methods?

Craig

[Mike Preston]

You may do it. There is no consistency requirement.

[Guest Sieve]

I agree with Mr. Preston.