403b plan beginning of year count

[Guest Jennyb473]

We are trying to determine how to use the exclusion for "employees who elect to contribute less than $200 per year". If you can exclude them, what do you do....in essence offer them entry into the plan and then when they elect less than $200 tell them no, you can't participate? Do you then not count them as a participant for the beginning of the year count on your Form 5500?

Very confusing since you cannot determine what their election would be until you offer them an election form as a participant in the plan, but then you yank it from them if they don't elect a large enough amount?

Any insight would be greatly appreciated!

thanks!

[ETA Consulting LLC]

I think you do count them since they are eligible to defer. The employer is obligated to deposit contributions for them if they actually decide to defer.

Good Luck!