Failing gateway test but passing rate groups and ABT

I have a client that wants to excluded commission only sales people from benefiting.  The plan passes coverage as some of these sales guys are HCE's.   The plan also passes the average benefits tests and the rate group tests.  The only test that is failing is the gateway test.   My question is do we need to benefit the lower income sales people at 5% to meet our gateway requirements?

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What is the current definition of compensation in the plan?  If it does exclude commissions, then you still have to pass 414(s) compensation testing or do an 11(g) corrective amendment.  The gateway must either be 5% of 415 comp or 1/3 the allocation rate (based on a definition that satisfies 414(s))

The only people who have to get a gateway are those already getting an allocation.  So, if the commission-only people are excluded, they do not have to get a gateway.

Sorry - I misread thinking the client wanted to exclude commissions from  Plan compensation and not the entire class.   Sure - exclude the class as long as pass coverage 

only because it is Friday....

technically, the initial premise is incorrect.

suppose you are sitting on Short Line railroad, just 5 squares from GO, collect $200.

you roll a double 3, but that is the third double in a row so you go directly to jail. do not pass GO, do not collect $200. that is the rule of Monopoly.

the regs are similar, if you don't pass the gateway, that means you never went through the gateway. you never reach nondicrim land. you can't collect $200. Wasn't the IRS clever for choosing such a descriptive word like 'gateway' to describe things. Well, ok, maybe clever is giving them too much credit. 

I love this...which reminds me...I have a marathon Monopoly session scheduled with my kids this weekend.

Make sure you play where you auction off any properties the die-roller chooses not to buy.  The first time my dad got a property for $1 was the last time I missed that rule.

Thanks for the tip.  I actually read the rules throughout for the first time a few weeks back and learned that rule.  Never played that way before.  It speeds up the game!

They are going to release a "Cheaters" edition this fall:  https://www.bloomberg.com/news/articles/2018-02-02/there-s-now-a-monopoly-made-specifically-for-cheating