Excluded in Safe Harbor 401(k) Plan

[Dougsbpc]

Suppose you have a safe harbor 401(k) plan.

An Employee participated in the plan for several years, then she terminated had a distribution and returned to work 3 years later. However,

she returned under an excluded class of employees. Normally, she would have re-entered the plan the day she was re-hired.

Can she be excluded by class under a safe harbor 401(k) plan?

I would think so as long as the plan passes 410(b).

Anyone agree / disagree?

[chc93]

I think she can be excluded by class as long as 410b passes. I don't see this as being any different than a participant transferring to an excluded class while employed.

[ETA Consulting LLC]

True. Plan participation is not protected, so you can be disallowed participation by moving into a class that is not allowed to participate in the plan. It's a non-issue as long as you pass 410(b). So, you're right.

Good Luck!