dmb
Dec 10 2002, 10:14 AM
Are allocated forfeitures counted toward the gateway test? If the HCEs are receiving greater than 15% of comp and the NHCEs are receiving an employer contribution of 4.7% of comp and .3% of comp from forfeitures, is that considered passing the gateway?? Thanks.
AndyH
Dec 10 2002, 10:50 AM
Yes, if they are "allocated or treated as allocated to the account of an employee under the plan for the plan year". This is the language in 1.401(a)(4)(2)©(2) which is referenced by the final cross testing regulations.