Multiple 401(k) Plans

[Guest Grumpy456]

ABC Co. and DEF Co. constitute a controlled group. ABC sponsors a safe harbor 401(k) plan covering its employees. DEF sponsors a traditional 401(k) plan covering its employees who are not HCEs (i.e., HCEs are excluded from active participation in the DEF plan).

Since DEF's plan is deemed to satisfy 410(b) (by excluding all HCEs from active participation), so long as ABC's plan satisfies 410(b), all is good, right?

Thanks for any comments/thoughts!

[Tom Poje]

most likely yes, since with no HCEs benefit plan DEF will always pass

since one plan is safe harbor and the other not, you can't aggregate for testing

assuming there are some HCEs in DEF that should make ABC passing either, but of course that depends on how many NHCEs from DEF aren't 'benefiting' in the ABC plan