hileman Posted April 10, 2018 Share Posted April 10, 2018 I have a plan with 3 partners and a few nhce 3% flexable SH to all ee's. Plan does not exclude HCE from the safe harbor. Plan is Top Heavy they would like to exclude one partner from receiving the safe harbor. Can you exclude one HCE/Owner from receiving safe harbor in a board resolution and still have safe harbor status? Link to comment Share on other sites More sharing options...
K2retire Posted April 10, 2018 Share Posted April 10, 2018 You must follow the terms of the document. If the document excludes that person, you're fine. Otherwise, they have to get it. Link to comment Share on other sites More sharing options...
Larry Starr Posted April 10, 2018 Share Posted April 10, 2018 If the resolution is written in the form of an amendment to the plan and is executed timely (before the plan year begins), then that individual can be excluded. Basically, you need an amendment prior to the time he becomes entitled to a SH contribution. I have seen board resolution that would easily qualify as an amendment, though our method provides an actual amendment to the plan AND a resolution to be adopted in addition. Lou S. 1 Lawrence C. Starr, FLMI, CLU, CEBS, CPC, ChFC, EA, ATA, QPFC President Qualified Plan Consultants, Inc. 46 Daggett Drive West Springfield, MA 01089 413-736-2066 larrystarr@qpc-inc.com Link to comment Share on other sites More sharing options...
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