Universal Availability and part time employees

[Lori H]

A plan states that you are immediately eligible for deferring into a 403(b) unless you are in certain class of employees then you are excluded. It states "If you are a member of a class of employees identified below, you are not an eligible employee for all plan purposes" The employees who are excluded are 1)Nonresident aliens 2) employees who normally work less than 20 hours per week and 3) student employees.

Would the universal availability rule apply here? I would think the word "all" would be the key word and that it would apply for matching eligibility, which is 24 months of service and age 21

Ultimately any employee regardless of hours worked should be eligible to defer, yes?

[Belgarath]

Not necessarily. 1.403(b)-5(b)(4) permits certain exclusions without violating the universal availability rule.

[Lori H]

yes. thank you for clarification.

[Lori H]

I'd like to add to this inquiry.....if someone is eligible but excluded because they do not work the 20 hours per week are they included in the ACP test?