Participation requirements

(A) In general The requirements of this paragraph are met with respect to any simple retirement account for a year only if, under the qualified salary reduction arrangement, all employees of the employer who— (i) received at least $5,000 in compensation from the employer during any 2 preceding years, and (ii) are reasonably expected to receive at least $5,000 in compensation during the year, are eligible to make the election under paragraph (2)(A)(i) or receive the nonelective contribution described in paragraph (2)(B).

(B) Excludable employees An employer may elect to exclude from the requirement under subparagraph (A) employees described in section 410(b)(3).