403(b) & 410(b) Coverage Tests

[Good401(k)]

I have a 403(b) with elective deferrals, discretionary matching and profit-sharing contributions.  The plan meets the universal availability requirements while excluding student employees and employees who regularly work less than 20 hrs per week.

Question is: are these employees also considered excludable for purposes of applying the coverage and discrimination tests.  I haven't found specific guidance in the regulations as it relates to 403(b)s specifically.  It would seem intuitively that these employees would also qualify as 'excludable' for coverage and discrimination testing purposes as for matching purposes they would never receive a match as a result of being excluded under UA rules.

Welcome any thoughts.

[CuseFan]

I believe the "standard" qualified plan coverage and nondiscrimination rules apply to matching contributions (410(b) and 401(m) ACP) and non-elective contributions (410(b) and 401(a)(4)).

[Good401(k)]

Thanks for the reply.

What about the application of the flush paragraph under 403(b)(12)(A)(ii) which states that for purposes of the non-discrimination requirements under 403(b)(12)(A) "

"Subject to the conditions applicable under section 410(b)(4), there may be excluded for purposes of this subparagraph employees who are students performing services described in section 3121(b)(10) and employees who normally work less than 20 hours per week."