Controlled Group Safe Harbor Plans with Different PLan Terms

[Lame Duck]

I have a situation that I've been struggling with and I think some of you may be able to help, since I am not an expert in safe harbor plans.

I have a client who is a member of a controlled group with about 20 members. The members all maintain separate safe harbor plans and define compensation as total compensation. My client wishes to amend the definition of compensation to exclude bonuses, even though none of the other members will be doing so.

First, can a member of the controlled group have a safe harbor plan with different provisions than the others.

Second, if it can what are the potential risks?

Thanks for any help and guidance you can give me.

[austin3515]

Does each plan pass coverage independently treating all other plan participants outside of their own plan as not benefitting? If yes, that's all you need to worry about. With 20 employers you might consider a QSLOB election. Sounds ugly.