If a plan is set up to cover only members of the board of directors and directors are NOT HCEs under 414(q) (plan tests out okay under 410(B)) would there be any reason why this classification might be considered unreasonable?

Is this a qualified plan?

Hi Pax--I also posted this message under Cafeteria Plans--it is a 125 plan (the board members are not HCEs under the 125 rules, either), HOWEVER, we are interested in whether this "classification" might be reasonable under the 410(B) rules (410(B) also applies to 125 plans)--i.e., exclusion of employees other than board members. Let's say it's a qualified plan--would you see any problem with it? Feel free to respond under the Caf Plan heading, too.

Thanks!