Is it possible to bring in ineligibles to pass 401(a)(4)?
Have a cross-tested 401(k) plan where they have provided nonelective contributions of 10% of salary to employees and whatever it takes to get the owner to the 415 max. They want to do the same this year but fail 401(a)(4).
Would it be possible to bring in ineligibles who worked more than 1,000 hours during the plan year and give them a 10% allocation with an 11g amendment? In this case they would have 5 ineligibles, but 2 of those ineligibles worked more than 1,000 hours in 2008. If it can be done, it is those two who would allow the plan to pass 401(a)(4).