Two 401(k) plans

[Guest ggdjo]

Can the same company sponsor more than one 401(k) plan to benefit certain segments of its employees? For example:

One 401(k) plan excludes all office workers and has a profit sharing contribution.

Another 401(k) plan excludes all but office workers and has a match.

Assuming coverage requirements are met, are there any issues?

[Tom Poje]

that can be done.

if plan only has language for deferral and match you might have problems if the plan is top heavy.

my guess is that you might even be able to accomplish all that in one plan - certainly the profit sharing plan could put people into classes. I haven't seen that done for purposes of match, but I imagine you could have an individually designed plan accomplish that.

[Guest terryh123]

Yes, as long as each plan separately passes coverage. And I agree with Tom Poje. It can all be accomplished in one plan as long as each feature -- 401(k), match and profit sharing separately passes coverage. I have done this in a nonstandardized prototype document where adoption agreement is flexible enough to allow exclusion of categories of employees from each "major" type of contribution.