excluding classes of employees

[Santo Gold]

Can a plan exclude "non-exempt" employees from a 401(k) plan, as long as 410b is satisfied?

[rcline46]

First you have to pass 410(b) and then you still have to pass ADP/ACP with those excluded by class treated as -0-. Oh, of course the 410(b) pass is the ratio percentage test, right?

[Santo Gold]

Correct on 410b = ratio% test. They will pass ADP and 410b easily even with these non-exempts being zeroes....I'm was just checking to ensure that they can be kept out of the plan by definition.

[Guest Pensions in Paradise]

Just to clarify, excluded employees are not included in the ADP/ACP test.