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401(k) vesting for classes


Guest Robert Lees

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Guest Robert Lees
Posted

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

Posted

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.

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