Top Paid Group Election

[Guest]

When using the top paid group election for HCE determination, you are permitted to exclude employees who "have not completed at least six months of service by the end of the plan year" (among other exclusions) before multiplying by 20% to determine the number of people in the top paid group.

Are both of the following allowable exclusions for purposes of "not having completed at least six months of service by the end of the plan year" for a calendar year look back year?

1) An employee who has worked for the company for 20 years and terminated on February 15 of the look back year? This employee technically did have six months of service in the look back year.

2) A new employee who was hired after July 1? This employee would not have six months of service during the look back year either.

Thanks for any help.

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