The spouse of a 100% owner currently works less than 1000 hours (1000 hrs required for allocation). She had been full time in previous years so she is an active participant. Can she be included in non-discrim testing?? It seems like this is an easy way to help testing if the spouse works a year or two to enter plan then only work minimum hours in the future to be included in test. Thanks.
AndyH
Mar 8 2004, 12:00 PM
Sure. Why not. But of course it is not an issue of "can", it's "must".
Blinky the 3-eyed Fish
Mar 8 2004, 03:11 PM
Check your plan document for BIS rules that may relieve her from her active participant status if she dips below 500 hours in a year.
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