Term less than 500 hours--not in General test?

[BG5150]

I know that if a participant terms with less than 500 hours, I can exclude him from coverage testing.  But can I exclude him from the general testing, too?

[Tom Poje]

on Jeopardy they would ask you to rephrase the question, I'm sure.

you can only exclude that person from coverage if the allocation requirements indicate terminated participants are excluded from receiving an allocation - just to make sure!

if it is a 401k plan, and the person could have deferred (whether or not he did is irrelevant) then he has to be included in the avg ben pct test, because that test includes all contributions, and, after all, he did 'benefit' (or could have benefitted) under the rules for a 401k portion of the plan.

as opposed to a profit sharing only plan in which there is no way he could have benefitted.

edited to add:

so, in a 401k plan he shows on the avg ben pct test, but might not show on the rate group test.