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Posted

Plan has no age or service requirement with monthly entry dates.

Employee A has been employed since 2011. He has never worked 1000 hours to earn a year of service.

On the 2011 ADP Test, he is listed as an 'otherwise excludable'. For the 2012 ADP Test, he is listed as an 'otherwise excludable'. Is this correct? Can you be otherwise excludable forever?

Posted

Yes. "IF" the plan is written to allow entry prior to a year of service (as defined by the plan), then any employee who never works the 'year of service as defined in the plan' would be otherwise excludable.

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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