I need some ideas...
Have a lawyer practice 401k plan that is starting to have retirees. I think the ownership group would like to NOT give the safe harbor and profit sharing to the retirees. It sounds like the retirees will be doing some work, just not a lot of work and will be paid via the Employer in normal fashion. I suggested maybe considering the retirees as 1099 employees. But, ER is not sure.
I am just starting the brain storm stage.
Any ideas?
Can the plan exclude the retirees the plan year after "retiring"? I hate to use the word termination, because they are not terminated, they just work way less now.
I don't think the plan could exclude by name... could be wrong. I don't see where a class would work, but maybe....
Thanks