401(a)(4) and irrevocable waiver

[cdavis25]

If an employee signs a timely irrevocable waiver for all Plans of the employer, then they are counted in 410(b) coverage testing as not benefiting. They are not counted in the ADP or ACP tests at all. They are counted in the cross testing of the Profit Sharing contribution as a zero EBAR.

Is this correct? I have read some conflicting post on here.

Tks.

[ETA Consulting LLC]

If an employee signs a timely irrevocable waiver for all Plans of the employer, then they are counted in 410(b) coverage testing as not benefiting. They are not counted in the ADP or ACP tests at all. They are counted in the cross testing of the Profit Sharing contribution as a zero EBAR.

Is this correct? I have read some conflicting post on here.

Tks.

You are correct. They will basically place themself into an ineligible class that is not a statutory excludable.

Good Luck!

[Tom Poje]

only 'eligible' people show up in the ADP or ACP tests.

so they wouldn't show on the tests, but for coverage they are includable and not benefiting (once they have met plan's eligibility)

for profit sharing they show as 0 for nondiscrim and also as includable and not benefiting for coverage.

the rule that applies to terminees with less than 500 only applies to participants. since they are not participants, even if they quit it apears they get counted as includable and not benefiting.

[cdavis25]

Tks!