Safe Harbor Plans

[Guest andmik]

An employer has two plans. Neither is exclusively a union plan.

One covers employees out in the field and the other is for office employees.

The plan that covers field employees is a safe harbor matching plan. The office plan is not a safe harbor plan and has a discretionary match and profit sharing plan. The office plan has most, if not all the HCEs in it, but nonetheless, the field plan has a couple of HCEs.

Other than passing coverage testing separately, does anyone see a prohibition against this sponsor providing for a safe harbor arrangement in one plan and testing the other under ADP/ACP rules?

Thanks in advance for any feedback.

[Guest Sieve]

You can use your approach as long as each plan passes 410(b) coverage testing standing alone. (There is no universal availability rule for a SH plan.)

[Guest andmik]

Thank you for the confirmation of the approach.

[Jim Chad]

I am quite certain there is no sort of "universal availability " rule for SH. So I think you have it right.

[Jim Chad]

I would have sworn I pressed the send key yesterday. ya gotta love computers.