Tonya

This NHCE was not let in already, they want to amend the plan to let him in early as of 7/1/2025, before he meets the 1 year eligibility requirement that everyone else has to meet. They cited that because it is an allowed SCP correction to let an employee in early by name after the fact, that it must be okay to let only one in by name on purpose.

I know that it is an allowed correction to let participants stay in a 401(k) plan if they were accidentally let in early, but would it be allowed to amend (prospectively) to let one employee in early by using his actual name in the eligibility waiver section of the document? My opinion is that it could be discriminatory towards the other employees that were NOT let in, and I advised they do a waiver for all if they want to allow him in, but they don't want to do that. This is an NHCE, but still doesn't seem allowable to me.