401(k) vesting for classes

[Guest Robert Lees]

Is it possible for a plan to have the hourly employees vest 100% immediately and the salaried employees vest on a 2-20 schedule.

[MWeddell]

It's very unlikely that there is a higher proportion of highly compensated employees among the hourly employees than among the salaried employees. Because the proposed vesting doesn't favor highly compensated employees, Treas. Reg. 1.401(a)(4)-11© isn't a consideration.