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Cross-Tested plan with only HCE employeea


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Guest vqualplan
Posted

The plan consists of 2 owners and a 3rd non-owner HCE. THe plan has a deferral provision and matches $.50 up to the maximum deferral limit.

If the groups are set up so the 2 owners are in a group and the other HCE is in his/her own group. Can we max the 2 owners at the annual contribution limit whilst giving the non-owner HCE a $0 contribution. It seems to me it would pass the testing but somehow does not "feel" right.

Thanks!

Posted

I assume you don't have any NHCEs. If that is the case, you can do whatever you want. There is no testing since there are no NCHEs.

Guest DFerrare
Posted

Don't forget about top-heavy if the match doesn't cover it.

Guest vqualplan
Posted

The match does cover the top-heavy minimum.

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