2 Person Non-Profit 401(k)

[Guest Tracy H]

Can a 2 person Non-Profit have a 401(k) Plan? And does is matter if both are HCE's?

[Guest]

that shouldn't be a problem.

technically you pass ADP test if all the employees are HCEs as well.

If the comps aren't large, the SIMPLE-IRA might be a better choice (cost wise)

I believe non-profits can adopt these well. I can't think of a reason they can't, but I could be wrong.

[Guest Laura]

Pay attention to affiliated service group and leased employee status. if tax-exempt utilizes even one NHCE leased employee, then the plan covering only HCEs will fail coverage.

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