Safe Harbor - Exclude HCE's EXCEPT Owners

[austin3515]

Can this be done? So all HCE's are excluded from SH Match, with the exception of Owner Employees?

I would think so. Sounds like an amazing design in the correct situation (i.e., lots of non-owner HCE's).

[ETA Consulting LLC]

Can this be done? So all HCE's are excluded from SH Match, with the exception of Owner Employees?

I would think so. Sounds like an amazing design in the correct situation (i.e., lots of non-owner HCE's).

Sure. You're plan document must be written to exclude that group of HCEs from the SHMAC.

Good Luck!

[BG5150]

Yep. I've seen it done both ways: exclude only the owners and exclude all the HCEs except the owners (and their spouses )

[austin3515]

How do you handle the SPD and Safe Harbor Notices? I assume you DO have to get into that level of detail?

[Kevin C]

I think both would need to accurately describe who gets the SH match.

I hope they don't match each payroll. Year end bonuses could make that interesting for the first payroll of a new year.

A top 20% election could be interesting, too. If eligibility for the SH match depends on HCE status, it seems that would make the top 20% election part of the SH match eligibility provisions that satisfy the rules of the SH regs. But, I assume you wouldn't elect it anyway.

[BG5150]

How do you handle the SPD and Safe Harbor Notices? I assume you DO have to get into that level of detail?

Custom Language, I'm assuming. FT William handles it nicely.