Near the end of 1.401(a)(4)-9©(3)(ii), it states:

"In addition, the minimum allocation gateway of §1.401(a)(4)-8(b)(1)(vi) and the minimum aggregate allocation gateway of paragraph (b)(2)(v)(D) of this section cannot be satisfied on the basis of component plans."

Does that say the gateway would have to be provided for the overall plan, not just the component, or am I misunderstanding the intent of this?

edit: typo

I think that is exactly what it is saying. A gateway applies to the plan as a whole, not to the myriad of hypothetical plans that you might set up (component plans) just for testing purposes.

Many thanks!

I agree with a caveat. If the "Otherwise Exclduable Employees" (OEE) are tested separately for 410(b) and 401(a)(4), they may not have to receive the gateway. It is dependant if there is an HCE in the OEE group and, if so, the gateway to the OEE NHCs will be based on the HCE in the OEE group. If there is no HCE, then the OEE NHCs do not have to receive the gateway.

But I don't think OEE fits within the definition of component plans.

I completely agree with you on OEE not falling in the definition of component plan. My post was just trying to clarify the phrase "whole plan" I justed wanted to make sure that people understood "whole plan" was not necessarily whole plan. (Confusing when top heavy min allocations are discussed and all eligible for any component of the plan must receive the allocation.) Maybe I was reading too much into it. Sorry for the confusion.

So does that mean that regardless of whether you are aggregating or disaggregating for coverage & nondiscrimination you can use the Otherwise Excludible options for ADP/ACP testing?

Thanks