Nonresident Alien Employees

[Guest DLearning]

Is anyone familiar with the following scenario:

U.S. employer sponsors a 401(k)/profit sharing plan. Presently, none of the U.S. employer's wholly-owned foreign subsidiaries have adopted the plan. May the plan be amended to provide that only employees of adopting employers who are citizens or permanent residents of the U.S. will be covered by the 401(k)/profit sharing plan? In other words, could the plan exclude nonresident alien employees from coverage?

Thank you for any comments.

D.L.

[Harwood]

Do the non-resident aliens have any U.S. source earned income?

Does the plan already exclude non-resident aliens with no U.S. earned income from eligibility?