Can you exclude a named individual from a qualified retirement plan?

[Guest rlt4]

The individual is an HCE and the plan specifically names him as an excluded individual. Is this permissible? I thought you could only exclude based on some sort of broader classification, like job class, hourly/salary, etc.

[J Simmons]

It is permissible to exclude an employee by name. If it were an NHCE, you'd need to take into account minimum coverage concerns before you did so.

[MWeddell]

Treas. Reg. 1.410(b)-4(b)(last sentence) provides that a plan that enumerates by name who is eligible does not satisfy with the nondiscriminatory classification test, which is part of the average benefit test. It strongly implies that including or excluding employees by name is fine as long as one is relying on the ratio percentage test method of satisfying Code Section 410(b).

In other words, I agree with J Simmons.