combo cross test with different eligibility requirements in DC & DB plans

the eligibility requirements in DC and DB plans are different, so NHCE A is eligible in the DB plan but ineligible in the 401(k) plan. when running combo 401a4 test, do we need to prepare an amendment to bring A into the 401k plan so that he/she will be able to get the GW min in 401(k) plan? OR A is not required to get the gateway minimum as he/she is ineligible in 401(k) plan? 

Either bring them in the DC.....or increase their DB accrual up to the gateway equivalent since it's probably not high enough to start with in the first place?

Maybe check if these people are short-service enough to run in a disaggregated set of tests for the otherwise excludable?  (Trying to think how the DB got the easier eligibility to get into, so maybe they use something less than the 410a max.)

And if top-heavy, they accrue a top-heavy minimum life annuity in the DB plan that you need to track. 

On 10/17/2024 at 5:08 PM, Bri said:

Maybe check if these people are short-service enough to run in a disaggregated set of tests for the otherwise excludable?  (Trying to think how the DB got the easier eligibility to get into, so maybe they use something less than the 410a max.)

This seems logical - early DB entrants being OE and tested separately/excluded from primary test and gateway. 

For testing if the two plans have different eligibility you test them based on earliest eligibility. So if it passes either with the the person not benefiting in the one plan, or by testing otherwise excludable you are good. If it's not passing look to your document for correction methods or (11)(g) amendment to correct.