Exclusions

[Dinosaur]

Can a plan be amended mid year to exclude a category of employees?

[QDROphile]

The question is too broad. Part of the answer is that an exclusion cannot be effective for those who have qualified for the contribution/accrual before the amendment, by accruing more than 1000 hours for example.

[Mike Preston]

Agree that it is too broad, but most of the time I refer questions like this to the court case "North Shore Auto Body". Usually, this question is asked about excluding employees who have not yet met eligibility. And that answer to that is certainly yes (as long as the amendment is not discriminatory).

[BG5150]

You can also make a class of employees ineligible for 401(k) contributions at any time. 401(k) eligibility is not a protected benefit.

[Dinosaur]

The plan will be amended before any employee accrues sufficient hours to be entitled to a profit sharing accrual and, likely will cover HCE's as well as NHCE's.

[Tom Poje]

but remember, even if such people are excluded from the plan, once they meet age 21/1 yr svc they are included and not beneifiting for coverage

and nondiscrim purposes (the non elective portion but not on ADP or ACP test)