Which of the following is NOT one of the exclusions when determining the top-paid group?

The correct choice highlights that employees who work at least 17½ hours a week are not excluded when determining the top-paid group, which is pivotal for the definitions and calculations concerning non-discrimination testing in 401(k) plans.

In the context of identifying the top-paid group, certain exclusions are set by the IRS to ensure that qualifications for participation in retirement plans remain equitable across different employee demographics. The criteria for these exclusions include factors like service duration and age, with the intention of excluding those who are generally less likely to contribute significantly to the retirement plan.

Employees with less than six months of service and those under the age of 21 are explicitly excluded from the top-paid group assessment because they may not have had enough time or opportunity to earn higher wages or contribute to the plan at previous levels. Furthermore, union employees can also be excluded if a large percentage of those employees are already receiving coverage, ensuring that the top-paid group does not disproportionately account for union workers who may have different compensation structures or agreements in place.

Ultimately, the measure of working at least 17½ hours a week does not disqualify an employee from being considered in the top-paid group because this threshold reflects a standard level of employment engagement, thereby allowing those who work significant