Employees working <20 hrs a week--excluded from coverage?

[BG5150]

If a 403(b) plan excludes EEs who work <20 hours a week, are they excluded from the 410(b) coverage test by default?

[RatherBeGolfing]

2 hours ago, BG5150 said:

If a 403(b) plan excludes EEs who work <20 hours a week, are they excluded from the 410(b) coverage test by default?

403(b)s aren't my specialty, but doesn't the universal availability requirement cover both coverage and nondiscrimination testing?   And <20 hours per week can be excluded under UA, so no coverage issues? 

[rocknrolls2]

UA only applies to elective deferrals under a 403(b) plan. IF the plan also provides for employer matching contributions, then there is ACP testing for the match (unless the plan meets a safe harbor design) and coverage testing, limited to the employer matching contributions. If the plan provides for nonelective employer contributions, then there is nondiscrimination and coverage testing, albeit limited to the employer nonelective contributions.  As applied to the employer contributions, if the plan provides for more generous eligibility requirements than the <20 hours per week exclusion, those employees who do not meet the more generous requirements are automatically excluded from nondiscrimination and coverage testing requirements.  In addition, those employees who meet the plan's eligibility requirements but do not satisfy the 20 hour per week minimum may be excluded from coverage and nondiscrimination testing as otherwise excludable employees.