I have a plan with a new comp allocation in which there are 3 designated groups. Group A is all of the HCEs, Group B is all of the other full time emplyees (NHCEs) and Group C is the other NHCEs. The allocation rate are as follows: Group A 1.47%, Group B 1.97% and group C is .5%. I say that this passes the gateway minimum, but another administrator says it doesn't but gives no reason. What do you think?

That it doesn't look like you even need to test on benefits. Body counts, please.

Group A - 5 participants
Group B - 130
Group C - 15

Gateway 3:1 requirements seem to be met and all rate groups pass. Seems ok to me but what do you think?

As Mike suggested you can probably not worry about it since you probably will pass non-discrim on an allocations basis. If you don't though, I do agree that you would pass the gateway minimum.

Does the plan's definition of compensation used to allocate contributions satisfy 414(s)? If so, then I agree with the other posters that you satisfy the 3 to 1 gateway but that you wouldn't have to test this on a benefits basis in the first place.

Breakwater, who designed that lovely allocation formula and did he/she come from the light?

Somebody said "probably"?????????

I have a single rate group, that has a ratio percentage of 89.66% when tested on a contributions basis and we are stuck on "probably"?

I didn't say the word "probably" but until we know whether plan compensation is a 414(s) definition of compensation, then the "probably" caveat still belongs in my opinion.

Where is Donkey Kong? No longer enforcing humbleness?