Any problems or concerns when a 401(k) plan covers only Non-Highly Com

[Dawn Hafner]

Assuming no HCEs benefit under the plan there will not be any discrimination issues. The classes of NHCEs that they want to exlude can be named as excluded classes on a protoype document. Are these office employees of the temp agency, so that they don't work for other companies? Are the HCEs covered under another plan?

[John A]

A temp agency wants a plan that covers only office employees that are NHCEs. The plan will not cover any of the temps and will not cover any of the office employees who are HCEs. Does anyone see problems with this?

Would this fit on prototype documents that you've seen?

In general, if a plan covers only NHCEs but not all HCEs, are there any areas of concern?

Thanks for any opinions.

[John A]

Dawn, thanks for the response. Yes, these are office employees of the temp agency, so they don't work for other companies. The temps that do work for other companies are excluded from the plan.

And no, the HCEs are not currently covered under another plan, although the agency would like to explore how to provide retirement benefits to HCEs.