DB/DC Gateway question

[Earl]

PS/401k is immediate and DB is 1 year of service.

Participant is in the DC but not the DB Plan.

Owner benefits under both plans.

Does the DC only participant

1. Get a 3% TH min or

2. Get a 5% TH min or

2. 7.5% gateway

Thank you!

(Answer is probably on here somewhere but I sure can't find it.)

[Lou S.]

It could be any one of the 3 depending on what the Plan document says and whether or not you are testing otherwise excludable employees separately or together with all employees.

[Earl]

Its 1 owner & 2 non-owner with the person in question being the young person in the mix.

Regardless he is in AB%T, right?

If test otherwise excludible he is out of the NDCT and I can give him 5%, right?

But to keep contribution for older employee down I need the kid to pass the NDCT and if he is in that test, he gets Gateway, right?

Thanks a lot

[Lou S.]

If he's not in the DB plan and the doc says folks only in the DC plan get the 3% TH min then he can get the 3% TH min.

But the moment you are testing him with the HCEs to pass testing he now needs to get a gateway, so yes he get's at least 7.5% assuming that's enough to make it pass.

So yes you are correct.