"Does the 'otherwise excludable employee' provision consist of two options: [1] Otherwise Excludable Employees -- where any employee HCE or NHCE is removed from testing, thus two tests -- one for everyone meeting max age and service, and one for those who are otherwise excludable under max age and service. [2]  Early Participation rule -- where you only exclude the NHCEs who have not met max age and service but would keep any HCE who has not met max age and service in the testing with everyone who met max age and service."

"Plan currently allows for in-service withdrawals at age 59-1/2 for all sources. They would like to limit it to only accounts that are 100% vested. Any anti-cutback violation?"

"Cash balance plan (half of a combo) had 6 eligible employees during the year. One of them terminated with fewer than 500 hours. And the plan requires 1000 hours for an accrual.

Seems easy... but the plan has separate classes for the contribution credits, and her class always gets zero. Did she fail to accrue solely based on the lack of hours?

She does get 415 participation credit for prior years even without an actual benefit, since she had the hours before 2021. So I'm back to at least thinking 'maybe.' (The two principal employees benefiting, out of either 5 or 6 employees, obviously are different outcomes for the test.)

Does the answer change if the plan is amended to provide any nonzero amount for a new class just for her, even though she won't accrue it?"