SHNEC/New Comp - ppt eligibility for PS - include them in New Comp calc or not???

Hi!

I am working through a minimum and maximum illustration for a profit sharing contribution. I hope I have an easy question here.

The plan is NOT top heavy. They give the 3% SHNEC. The allocation conditions for the PS are last day and 1000 hours of service. I have two NHCE's who terminated in 2023 and I have one HCE who was employed on 12/31/2023 but did not work 1000 hours. Can I completely remove the three of them from the New Comp testing? OR do I still need to include them in New Comp testing? If I keep them in I have to give them some PS in order to pass Gateway and/or Nondiscrimination testing.

Thank you

Are they getting SHNE? If so, they have to get gateway also. 

Yes all eligible employees will be getting a SHNEC

In for a penny (3%), in for a pound (gateway rate)

Agreed - and still boggles my mind that such plans continue to have 1000 hours and last day requirements when those are superseded by gateway and testing requirements.