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Safe Harbor Nonelective & HCE exclusion


AdKu

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Can I exclude all HCEs from receiving Safe Harbor Nonelective if the current plan document doesn't have any specific language to do so (below is the language from the plan document and the spd)?

I moved this question as a follow-up question

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Don't see your language, but the plan says that either all eligible participants get the SH or it specifically limits who gets SH. Based on the wording of your question I'm guessing it does not exclude anyone from the SH so everyone, including HCEs, must receive. This is not optimal design if part of cross-testing PS or DB/DC combo because young HCEs (e.g., owner's children) can really blow up your results (enter restructuring). Good luck

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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