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"reasonable" classifications


Guest CKrum
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We have a client that insists on restricting access to their benefit plan to only their managers. Assuming it could pass the safe harbor testing, would "managers" be considered a "reasonable" classification based on "valid business criteria" as required by 1.410? I have seen examples using hourly vs salary, geographical location and references to "job category" but I'd like to make sure that "manager" would qualify.

Thanks

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Quoting the The ASPPA Defined Contribution Plan Series Volume 3:... "Reasonable classifications include specified job categories of employees (e.g. secretaries)...." under the chapter for ABT and Special Rules. You can find this on page 5-4 of the 2nd Edition. I think managers are a specific category. Hope this helps. :rolleyes:

Having braved the blizzard, I take a moment to contemplate the meaning of life. Should I really be riding in such cold? Why are my goggles covered with a thin layer of ice? Will this effect coverage testing?

ERPA, QPA, QKA

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