Otherwise Excludible Employees Plan Entry Dates

[Guest MFuentes]

There's a raging discussion in our office about the entry date when restructuring the ADP/ACP test as allowed by Treas. Reg. §1.401(k)-1(B)(3))(ii). This allows us to exclude and test NHCEs who met the plan's entry requirements, but haven't met the statutory age and service requirements of §1.410(a)-3. This all seems straight forward to me, but there're some in the office who take it a step further and apply the statutory entry dates of §1.410(a)-4(B). I'm trying to find out if anyone else has heard of this. If you do, what's your guidance for appling the statutory time of participation rule to the otherwise excludible employee group?