Excluding category from safe harbor nonelective

[dmwe]

I'm working with a new client who has the following allocation groups defined in the adoption agreement - HCE Managers, HCE Non-managers (spouses), and Staff.

In the past they've not given the spouse group the Nonelective Safe Harbor contribution or any profit sharing.

Can you really exclude a group from the Safe Harbor Nonelective contribution? I thought everyone had to get the Safe Harbor.

Thanks

[Lou S.]

You can exclude (some or all) HCEs from the safe harbor contribution in the Plan document. But if they aren't specifically excluded from it in the document you can't just decide not to give it to them.