One employer: Two separate Safe Harbors

[ERISA25]

I do not think you can do this, but can an employer offer one safe harbor match to one group of employees and then a different safe harbor to another group? It seems that Treas. Reg. 1.401(k)-1(b)(4)(iii)(B) would not allow this. Assume no separate lines or control group issues.

[ERISA25]

I should clarify that the group that they would like to give a different safe harbor match is not a separate line.

[Tom Poje]

yes and no, maybe, and only if I understand the regs correctly.

I certainly know of no document you could do this in a single plan, but it seems logically you could do it in two plans.

however, you could not aggregate the plans unless you were absoultely guaranteed that no HCE could receive at a higher rate for any level of match. but since you can't aggregate the plans, you have the chance of failing coverage and how would you even handle that if it did indeed happen? and if one plan is safe harbor match and the other 3% shnec I think all bets are off.