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We have a prospective client.

The client is a Controlled Group consisting of Company A and Company B.

Company A has over 80 employees. Company B has 20 employees. Client would like to offer a 401k plan to company A and company B but wants to provide a safe harbor match to Company A only.

The plan will pass coverage on the match with the employee count that currently exists.

Is this ok? In other words can a safe harbor plan exclude employees, other than statutory excludables?

Thanks

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