Jean Posted April 13, 2010 Posted April 13, 2010 In a new comparability allocation, can you provide an allocation of 0% to one group if the plan does not have HCEs? I'm drawing a blank as to why it would not work.
J Simmons Posted April 13, 2010 Posted April 13, 2010 I agree with Jim. By reason of no HCEs, there is no discrimination concern. So you do not need a gateway minimum for NHCEs. John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Mike Preston Posted April 14, 2010 Posted April 14, 2010 This is probably an over-cautious comment, but be sure that the plan in question isn't somehow subject to top-heavy. Having an NHCE Key employee in the plan might do it, as would this plan being part of a required aggregation group with another plan where the combined plans are top-heavy.
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